On December 1, 2015, Twilight Corporation paid $8,000 rent in advance. The rent per month is $1,000 . If Twilight's accounting period ends on December 31, 2015, what will be reported on the financial statements?
a. Prepaid Rent of $7,000 on its balance sheet at December 31, 2015
b. Prepaid Rent of $8,000 on its balance sheet at December 31, 2015
c. Rent Expense of $8,000 on its 2015 income statement
d. Rent Revenue of $7,000 on its 2015 income statement
a
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