Aladdin adjusts the accounts at the end of each month. Based on these facts, the adjusting entry at…

On January 1 of the current year, Aladdin Company paid $600 rent to cover six months (January–June). Aladdin recorded this transactions as follows:

Prepaid Rent

600

Cash

600

Aladdin adjusts the accounts at the end of each month. Based on these facts, the adjusting entry at the end of January should include

a. a credit to Prepaid Rent for $500.

b. a debit to Prepaid Rent for $500.

c. a debit to Prepaid Rent for $100.

d. a credit to Prepaid Rent for $100.

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