On July 1, 2015, Charlie Co. paid $18,000 to Rent-An-Office…
On July 1, 2015, Charlie Co. paid $18,000 to Rent-An-Office for rent covering 18 months from July 2015 through December 2016. What adjusting entry should Charlie Co. record on December 31, 2015? 1) Rent Expense 18,000 Cash 18,000 2) Rent Expense 18,000 Prepaid Rent 18,000 3) Prepaid Rent 6,000 Rent Expense 6,000 4) Rent Expense 6,000 Prepaid Rent 6,000