1. 2. 3. The company paid $4,500 for next year's rent. The company paid $2,000 of its accounts payable, owed for previously purchased inventory. The company declared and distributed $500 of dividends. Transaction Increasel Number Account Decrease Debit or Credit Debit Credit Debit Credit Prepaid Rent Increase Decrease Decrease Decrease Cash 2. Accounts Payable Cash 3