Question

journal entry worksheet
the balance in the prepaid rent account represents rent for december.
note: enter debits before credits.
date | account title | debit | credit
december 31 | rent expense | |

prepaid rent

Explanation:

Step1: Identify the transaction nature

The Prepaid Rent for December is now expensed (since December has passed), so we need to recognize the rent expense and reduce the prepaid rent. The amount for both debit (Rent expense) and credit (Prepaid rent) should be equal to the balance in Prepaid Rent (let's assume the balance is \( x \), but since the problem is about journal entry logic, we focus on accounts).

Step2: Journal entry logic

When the prepaid rent is used (for December), we debit Rent Expense (to recognize the expense) and credit Prepaid Rent (to reduce the asset). So the entry is:

• Debit Rent Expense (amount equal to the prepaid rent balance for December)
• Credit Prepaid Rent (same amount)

Answer:

For the journal entry on December 31:

• Date: December 31
• Account Title: Rent expense, Debit: [amount of prepaid rent for December], Credit:
• Account Title: Prepaid rent, Debit: , Credit: [amount of prepaid rent for December]

(Note: The actual amount would be the balance in Prepaid Rent account for December, which is not provided numerically here, but the accounts and their debit/credit sides are as above.)