On January 1, Laura Inc. prepays rent for 12 moriths for a total of $60,000. What journal entry will Laura inci make on January 1 to record this transaction? br prepola Rent 60000, Crent axpense 60,000 Or Prepaid Rent 60,000; Cr Cash 60,000 or Prepsia Rent 60.000, Cr Rent Revenue 60,000 or Rent Expense 5000, Cr Rent Payable 5,000 Dr Rent Expense 5,000,cr Cash 5,000

On January 1, Laura Inc. prepays rent for 12 months for a total of $60,000. The journal entry that Laura Inc. will make on January 1 to record this transaction is:Prepaid Rent 60,000; Cr Cash 60,000Explanation:Prepaid rent refers to advance payments made for rent. When a company pre-pays rent, it is recorded as an asset called prepaid rent. It is a type of current asset account that appears on the balance sheet. It is also referred to as unexpired rent because it is rent that the company has paid in advance but has not yet used.On January 1, Laura Inc. prepays rent for 12 months for a total of $60,000. The journal entry that Laura Inc. will make on January 1 to record this transaction is:Prepaid Rent 60,000; Cr Cash 60,000.The debit to prepaid rent represents the increase in the asset account while the credit to cash represents the decrease in the asset account.

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