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record transactions..?
1) A company paid three months’ rent in advance. The journal entry to record this transaction is:
A) Rent Expense Cash
B) Cash Prepaid Rent
C) Cash Rent Expense
D) Prepaid Rent Cash
2) Paid the rent for the next six months.
A) An asset would be debited and an expense credited.
B) An asset would be debited and a revenue credited.
C) Capital would be debited and a revenue credited.
D) An asset would be debited and an asset credited.
PLEASE ONLY REPLY IF YOU'RE ABSOLUTELY SURE. MANY THANKS
1 Answer
- Anonymous9 years agoFavorite Answer
1. D. Debit Prepaid Rent (Current Asset) Credit Cash.
2. D. Again, you Debit Prepaid Rent and Credit Cash.
If the six months include the current month, the first month's rent would be a debit to Expense.
Source(s): CPA