On September 1, 2016, Joy, Inc. paid $8,000 in advance for an eight-month rental space covering the period of September, 2016 through April 2017. The deferred expense was initially recorded as an asset. Joy, Inc

makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2016 would include a ________.
A) debit of $8,000 to Cash
B) credit of $8,000 to Prepaid Rent
C) debit of $4,000 to Rent Expense
D) credit of $4,000 to Rent Expense

C .Prepaid Rent on December 31, 2014 = $8,000 x 4/8 = $4,000