000 and total Question 24 of 25 20 points Save 26900 And D d

000 and total ?Question 24 of 25 20 points Save $26,900 And D. debit Prepaid Rest, $30,000, credin Rent Expase $30,000 ers equity increased by and direction during the e in Financial Ma Moving to another question will save this response. 6:42 PM 6/11/2018

Solution

solution:

The correct answer is option B. Debit Rent Expense $30,000 and credit Prepaid rent $30,000

since prepaid rent has been expired by $30,000 (i.e.90,000/3) at Dec.31 and we have to recognize rent expense for this amount and we will do it by crediting the prepaid rent for such amount.