Question

the prepaid rent account had a $6,000 debit balance at december 31 before adjusting for the costs of expired prepaid rent. an analysis of the rental agreement showed that $5,400 of prepaid rent had expired. note: enter debits before credits. transaction general journal debit credit

Explanation:

Step1: Identify expense recognition

When prepaid rent expires, rent expense is recognized and prepaid rent is reduced.

Step2: Determine debit and credit

Debit Rent Expense for the expired amount and credit Prepaid Rent.

Answer:

Transaction	General Journal	Debit	Credit
	Prepaid Rent		$5,400