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8. Luper Corp. had a $1,500 debit balance in its prepaid rent account (3 months rent) at 1/1/16. On 4/1/16 Luper paid its landlord
8. Luper Corp. had a $1,500 debit balance in its prepaid rent account (3 months rent) at 1/1/16. On 4/1/16 Luper paid its landlord $6,540 for 12 months rent beginning that day. Luper debited the $6,540 to rent expense. There were no other transactions involving rent that year. The proper adjusting entry for its rent accounts at 12/31/16 was: Dr. Prepaid rent and Cr: Rent expense for $135. b) Dr. Prepaid rent and Cr: Rent expense for $1,635. (c) Dr. Rent expense and Cr: Prepaid rent for $135. (d) Dr: Rent expense and Cr: Prepaid rent for $1,635. Dr: Rent expense and Cr: Prepaid rent for $6,405.
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