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:

option 1:
date | accounts | debit | credit
--- | --- | --- | ---

prepaid rent	2,000
cash		2,000

option 2:
date | accounts | debit | credit
--- | --- | --- | ---

cash	2,000
rent expense		2,000

option 3:
date | accounts | debit | credit
--- | --- | --- | ---

rent expense	2,000
cash		2,000

option 4:
date | accounts | debit | credit
--- | --- | --- | ---

cash	2,000
prepaid rent		2,000

Explanation:

Analyze the transaction components

$$
LATEXBLOCK0
$$

Determine the correct journal entry structure

$$
LATEXBLOCK1
$$

Match with the given options

$$
LATEXBLOCK2
$$

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