Pine Corporation makes adjusting entries monthly. As of March 31, the general ledger shows Prepaid Rent to have a debit balance of $6,000. Rent expires at a rate of $1,200 per month. No entry for rent has been recorded in the month of March. What adjusting entry is necessary at March 31?
A) Prepaid Rent 500Cash 500
B) Rent Expense 1,200Cash 1,200
C) Rent Expense 1,200Prepaid Rent 1,200
D) Prepaid Rent 6,000Rent Expense 6,000
C
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What will be an ideal response?
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