On January 1, Renoir Associates paid $6,400 for six months of rent. Assume no other adjusting entries have been done this fiscal year. What would the adjusting entry be on March 31?

A.

Debit Rent Expense $1,067, credit Cash $1,067

B.

Debit Rent Expense $3,200, credit Prepaid Rent $3,200

C.

Debit Rent Expense $1,067, credit Prepaid Rent $1,067

D.

Debit Rent Expense $3,200, credit Cash $3,200