On September 1, 2024, Real Estate Professionals, Inc. paid $6,000 in advance for an eight-month rental...

 

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On September 1, 2024, Real Estate Professionals, Inc. paid $6,000 in advance for an eight-month rental space covering the period of September 1, 2024 through April 30, 2025. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2025 would include a A) debit of $6,000 to Cash B) credit of $6,000 to Prepaid Rent C) debit of $3,000 to Rent Expense D) credit of $3,000 to Rent Expense current year. It has an On September 1, 2024, Real Estate Professionals, Inc. paid $6,000 in advance for an eight-month rental space covering the period of September 1, 2024 through April 30, 2025. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2025 would include a A) debit of $6,000 to Cash B) credit of $6,000 to Prepaid Rent C) debit of $3,000 to Rent Expense D) credit of $3,000 to Rent Expense current year. It has an

Answer rating: 100% (QA)

The adjusting entry on December 31 2025 for the prepaid rent would involve recognizing the portion ... View the full answer