Respuesta :

An adjustment for Prepaid Rent would indicate the amount on hand.

 

Prepaid rent is rent paid prior to the rental period to which it relates, so the tenant should record on the balance sheet the amount of rent paid that has not yet been used.

 

The correct answer between all the choices given is the third choice or letter C. I am hoping that this answer has satisfied your query and it will be able to help you in your endeavor, and if you would like, feel free to ask another question.
An adjustment for Prepaid Rent would indicate the amount expired.
Prepaid expenses may need to be adjusted at the end of the accounting period. The adjusting entry for prepaid expense depends upon the journal entry made when it was initially recorded.
Thus B. expired is the best choice.