Journal entry for prepaid rent. A firm reported a balance in its Prepaid Rent account of

$ 1 ,200 on January 1 , Year 1 2. On February 1 . Year 1 2, the firm paid $ 1 8,000 as the annual rental for the period from February 1, Year 12 to January 31, Year 13. It recorded this rental payment by debiting Retained Earnings (rent expense) and crediting Cash for $18,000. This is the only entry made in the accounting records during Year 12 related to rent. The firm uses the calendar year as its reporting period. Give the journal entry that this firm must make on December 3 1 .

Year 12, to correctly report Prepaid Rent and Rent Expense in its accounts.