On January 1 of the current year, Oliver Company paid $2,100 in rent to cover six months (January June). Oliver recorded this transaction as follows: 囲(Click the icon to view the journal entry.) Oliver adjusts the accounts at the end of each month. Oliver's adjusting entry at the end of February should include a debit to Rent Expense in the amount of O A. $700 O C. $350 D. $1,400 Data Table Journal Entry Accounts Credit Date Debit 2,100 Jan1 Prepaid Rent Cash 2,100 PrintDone On January 1 of the current year, Oliver Company paid $2,100 in rent to cover six months (January June). Oliver recorded this transaction as follows: 囲(Click the icon to view the journal entry.) Oliver adjusts the accounts at the end of each month. Oliver's adjusting entry at the end of February should include a debit to Rent Expense in the amount of O A. $700 O C. $350 D. $1,400 Data Table Journal Entry Accounts Credit Date Debit 2,100 Jan1 Prepaid Rent Cash 2,100 PrintDone
Oliver Company has paid $2,100 in rent to cover six months. Calculate the per month rent - Per month rent = Prepaid rent/Number of months = $2,100/6 = $350 So, The per month rent is $350. Thus, Oliver's adjusting entry at the end of February should include a debit to rent expense in the amount of $350. The option (C) is the correct answer.
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