Question
At May 31, 20x6, the unadjusted trial balance of Brook Corporation has a debit balance of $13404 in the prepaid rent account. At May 31,
At May 31, 20x6, the unadjusted trial balance of Brook Corporation has a debit balance of $13404 in the prepaid rent account. At May 31, 20x6, $10691 of the balance in the prepaid rent account had not been used. Brook Corp. prepares adjusting journal entries monthly.
Which of the following would be the correct monthly adjusting journal entry at May 31, 20x6, with respect to this prepaid rent?
a. Debit Prepaid Rent $2713 and Credit Rent Expense $2713
b. Debit Cash $10691 and Credit Prepaid Rent $10691
c. Debit Rent Expense $10691 and Credit Prepaid Rent $10691
d. Debit Rent Expense $2713 and Credit Prepaid Rent $2713
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