X Company prepares monthly financial statements. The company rents a fax machine. The rental agreement calls for a $300 lump sum payment at the beginning of each month, plus an additional $0.07 per fax, payable in the following month. In April, 1,200 faxes were sent; in May, 1,000 faxes were sent.
What will appear on X Company's April financial statements?
Rent expense, $384; Rent Payable, $84
Rent expense, $300; Rent Payable, $300
Rent expense, $384; Rent Payable, $384
Rent expense, $308; Prepaid Rent, $308
Rent expense, $300; Rent Payable, $84
Rent expense, $370; Accounts Payable, $70