On December 20, 2020, A Company made the following correct journal entry:

Prepaid rent ......................................................24,000

Cash .......................................................................... 24,000

What transaction was the journal entry recording, assuming "A" Company has a December 31 year-end?

Select one:

a.

$24,000 payment by "A" Company for office rent owning from the year 2020

b.

$24,000 payment by "A" Company for its December 2020 office rent

c.

$24,000 payment by "A" Company to rent office space starting January 1, 2021

d.

$24,000 cash received by "A" Company for vacating its office space one year early