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On January 1 Hanigan Corporation paid $12,000 to Ryan Realty for 12 months rent beginning...

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Accounting

On January 1 Hanigan Corporation paid $12,000 to Ryan Realty for 12 months rent beginning January 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on March 31, the adjusting entry to be made by Hanigan Corporation is:

A ) debit Rent Expense, $12,000; credit Prepaid Rent, $6,000.

B) debit Prepaid Rent, $3,000; credit Rent Expense, $3,000.

C) debit Rent Expense, $3,000; credit Prepaid Rent, $3,000.

D) debit Rent Expense, $12,000; credit Prepaid Rent, $12,000.

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