Accrual Based Accounting Adjusting Journal Entries (AJEs): Say Something, Inc. rents equipment for the 12 months, paying $14,400 cash in advance on August 1^st, 2019 for the rental period of August 1^st, 2019 July 31, 2020.

1. Record the journal entry for the original payment in advance on August 1^st, 2019.
2. Record the adjusting entry to recognize Rent Expense on December 31^st, 2019. Assume Say Something uses an annual accounting period which ends on December 31^st, 2019 and adjusting entries are only made at the end of the annual accounting period on 12/31 (i.e. assume no adjusting entries have been recorded yet).
3. What if we did not make the adjusting entry on 12/31/19 to recognize this expense? Indicate by how much assets, liabilities, and SHE would be either under- or overstated if this adjusting entry were not recorded. If no effect, write no effect.
4. Assuming we do recognize this expense at the end of the accounting period on 12/31/19, what will the ending balance of the Prepaid Rent account be on December 31, 2019 (Assume the balance of Prepaid Rent on July 31^st, 2019 was $0 and Say Something, Inc. has no other prepaid assets)?