Hank’s Tax Planning Service started business in January 2016

Hank’s Tax Planning Service started business in January 2016. The company rented an office for $7,000 per month starting from January 1, 2016. On that day, Hank prepaid the rent through June 30

The company makes adjusting entries at the end of each month. What is the balance in the Prepaid Rent account as of April 30, 2016?
A) $14,000
B) $1,167
C) $7,000
D) $3,500

ANSWER

A .