Oliver adjusts the accounts at the end of each month. Based on these facts, the adjusting entry

Question:

Oliver adjusts the accounts at the end of each month. Based on these facts, the adjusting entry at the end of January should include
a. A credit to Prepaid Rent for $350.
b. A debit to Prepaid Rent for $1,750.
c. A credit to Prepaid Rent for $1,750.
d. A debit to Prepaid Rent for $350.

On January 1 of the current year, Oliver Company paid $2,100 rent to cover six months (January–June). Oliver recorded this transaction as follows:

A1 Journal Entry Debit Credit Date Accounts 2 3 4 Jan 1 Prepaid Rent 2,100 Čash 2,100