Question

on march 14, complete computer service prepays 4 month of office rent of $2,000.

the journal entry to record this transaction would be:

• date: accounts: prepaid rent, debit: 2,000; cash, credit: 2,000
• date: accounts: cash, debit: 2,000; rent expense, credit: 2,000
• date: accounts: rent expense, debit: 2,000; cash, credit: 2,000
• date: accounts: cash, debit: 2,000; prepaid rent, credit: 2,000

Explanation:

Analyze the transaction components

$$
LATEXBLOCK0
$$

Match with the journal entry options

$$
LATEXBLOCK1
$$

Answer:

• (A) Debit: Prepaid Rent $2,000; Credit: Cash $2,000 (Correct answer)
• (B) Debit: Cash $2,000; Credit: Rent Expense $2,000
• (C) Debit: Rent Expense $2,000; Credit: Cash $2,000
• (D) Debit: Cash $2,000; Credit: Prepaid Rent $2,000