On September 1, 2017, Brown Corp. made the annual lease payment of $12,000 for its fleet of delivery trucks. The payment covered the period September 1, 2017 to August 31, 2018. Assuming the entire amount had originally been debited to Lease Expense, the required adjustment at December 31, 2017 is
A. debit Lease Expense and credit Prepaid Lease $4,000.
B. debit Prepaid Lease and credit Lease Expense $4,000.
C. debit Prepaid Lease and credit Lease Expense $8,000.
D. debit Lease Expense and credit Prepaid Lease $8,000.
Answer:C
On September 1, 2017, Brown Corp. made the annual lease payment of $12,000 for its fleet of delivery trucks. The payment covered the period September 1, 2017 to August 31, 2018. Assuming the entire amount had originally been debited to Lease Expense, the required adjustment at December 31, 2017 is
A. debit Lease Expense and credit Prepaid Lease $4,000. B. debit Prepaid Lease and credit Lease Expense $4,000. C. debit Prepaid Lease and credit Lease Expense $8,000. D. debit Lease Expense and credit Prepaid Lease $8,000.