On November 1, $4,800 of rent on equipment for the next six months was paid and charged to Prepaid Rent. At the end of the year, the financial statements would report:
A) Rent Expense, $4,800; Prepaid Rent $0.
B) Rent Expense, $1,600; Prepaid Rent $3,200.
C) Rent Expense, $1,600; Prepaid Rent $4,800.
D) Rent Expense, $3,200; Prepaid Rent $1,600.
Answer: B
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