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On November 1, 2018, Lucky 13 Inc. paid $12,000 for renting their office space for the period November 1, 2018 April 31, 2019. Lucky 13
On November 1, 2018, Lucky 13 Inc. paid $12,000 for renting their office space for the period November 1, 2018 April 31, 2019. Lucky 13 Inc. has not made any other journal entries related to the rent. Lucky 13 Inc. is preparing their financial statements for the calendar year-end December 31, 2018. The adjusting journal entry on December 31, 2018, related to the rent would include
a debit to prepaid rent for $4,000
a debit to rent expense for $2,000
a credit to prepaid rent for $4,000
a debit to rent expense for $6,000
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