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  3. xyz paid for a 12-month rent that went into effect

XYZ paid for a 12-month rent that went into effect on January 1. The total...

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Accounting

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XYZ paid for a 12-month rent that went into effect on January 1. The total amount is 24,000. At January 31, one month or $2,000 of the rent has expired (been used up) calculated as $24,,000/12 months = $2,000. What is the correct journal entry on January 31 for the 2,000 for XYZ? O a. Debit Prepaid Expense, Credit Rent Expense O b. Debit Rent Expense, Credit Prepaid Expense OC. Debit Unearned Revenue, Credit Revenue Od. Debit Revenue, Credit Unearned Revenue

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