On January 1, Mountbatten Corporation paid $14,000 for a year's advance rent on a building and recorded it as Rent Expense. The rental period begins on January 1. When financial statements are prepared on March 31, the adjusting entry should include ________. (Do not round intermediary calculations. Only round your final answer to the nearest dollar.)

A.

a credit to Cash for $10,500

B.

a debit to Rent Expense for $3,500

C.

a credit to Rent Expense for $10,500

D.

a credit to Prepaid Rent for $3,500

2.

Which of the following income statement elements is an economic outflow that occurs from primary operations?

A.

loss

B.

deficit

C.

expense

D.

revenue