Financial Accounting Question?

Financial Accounting Question? On July 1, 2012, Charlie Co. paid $18,000 to Rent-An-Office for rent covering 18 months from July 2012 through December 2013. What adjusting entry should Charlie Co. record on December 31, 2012? A) Rent exp 18,000 cash.........................18,000 B) Prepaid rent... show more Financial Accounting Question?
On July 1, 2012, Charlie Co. paid $18,000 to Rent-An-Office for rent covering 18 months from July 2012 through December 2013. What adjusting entry should Charlie Co. record on December 31, 2012?

A) Rent exp 18,000
cash.........................18,000

B) Prepaid rent 6,000
Rent exp. ........................6,000

C) rent exp. 6,000
Prepaid rent ......................6,000

D) Rent expense 18,000
Prepaid rent.......................18,000
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