On December 1 2012 Jenna Company paid three months rent for

On December 1, 2012, Jenna Company paid three months\' rent for office space for December 2012, January 2013 and February 2013 totaling $21,000. The payment was originally recorded by a debit to a real account. Jenna\'s required adjusting entry at December 31, 2612 would include: O a debit to Rent Payable. O a debit to Prepaid Rent. O a credit to Rent Payable. O a debit to Rent Expense. o none of the above

Solution

Answer is a debit to Rent expense.

Explanation:

Rent paid for 3 months: 21000 (i.e. $ 7000 per month for each of Dec, Jan and feb). debited to Prepaid rent account.

At the end of Dec month, one month rent shall be debited to rent expense i.e. $ 7000 and credited to prepaid rent as the rent for one month has been expired.