Due to the terms of its lease, Peachtree Services, Inc., pays the rent for its new office space in one annual payment of $24,000 on August 1, 2016. The lease covers the period of August 1, 2016, through July 31, 2017. Peachtree Services has a year-end of December 31. Assume that Peachtree Services had no other prepaid rent transactions, nor did it have a Prepaid Rent beginning balance in 2016. Give the journal entries that Peachtree Services would make for
(a) The annual rent payment of $24,000 on August 1 and
(b) The adjusting entry for rent expense on December 31, 2016. What is the balance of Prepaid Rent at December 31, 2016?