Bates Company paid $1,600 cash for the right to use office space during the coming year. Which of the following shows how this event would affect Bates balance sheet?

	Balance Sheet
	Assets		=	Liabilities	+	Stockholders' Equity
	Cash	Prepaid Rent		Accounts Payable		Common Stock	Retained Earnings
A.		1,600		1,600
B.	(1,600)	1,600
C.		1,600					1,600
D.		(1,600)					(1,600)

Multiple Choice

Option A

Option B

Option C

Option D