Account for rent expense. (LO 1, 3)

Utopia Dance Clubs Inc. rented an old warehouse for its newest club on October 1, 2006. To receive a discount, Utopia paid \(\$ 2,970\) for 18 months of rent in advance. How will this advance payment appear on the financial statements prepared at year-end, December 31 ? Assume no additional rent is paid in 2007 and 2008. Use the following chart for your answers:

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2006 2007 2008 Rent expense for the year Prepaid rent at December 31