when-a-company-pays-for-a-years-rent-in-advance-which-of-the-following-entries-i

Question

When a company pays for a year's rent in advance, which of the following entries is made initially?

Accepted Answer

Debit Prepaid Rent; Credit Cash

Answer

Debit Rent Expense; Credit Cash

Answer

Debit Cash; Credit Prepaid Rent

Answer

Debit Rent Expense; Credit Prepaid Rent