Finanz Inc. is a firm located in Zuerich, Switzerland. On July 1, the firm paid CHF 14,000 to its landlord for 4 months rent beginning July 1. Prepaid Rent was debited for the full amount. The firm prepares its financial statements on July 31. The firm shall make the following adjusting entries:

a. Debit Rent Expense, CHF 14,000; Credit Prepaid Rent, CHF 14,000.

b. Debit Rent Expense, CHF 3,500; Credit Prepaid Rent, CHF 3,500.

c. Debit Rent Expense, CHF 14,000; Credit Prepaid Rent, CHF 3,500.

d. Debit Prepaid Rent, CHF 3,500; Credit Rent Expense, CHF 3,500.

Answer rating: 100% (QA)

The Answer is in the image, click to view ... View the full answer