\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{\begin{tabular}{l} c. Prepaid Rent. On September 1 of the current year, the company prepaid $32,400 for two years of rent for facilities being \\ occupied that day. The company debited Prepaid Rent and credited Cash for $32,400. \end{tabular}} \\ \hline \multirow[b]{2}{*}{ Step 1: Determine what the current account balance equals. } & \multirow[b]{2}{*}{32,400} & \multirow{2}{*}{\begin{tabular}{|l|} Debit or \\ Credit? \\ Debit \\ \end{tabular}} & \multicolumn{2}{|c|}{ Prepaid Rent } \\ \hline & & & 32,400 & \\ \hline & & & & 10,800 \\ \hline Step 2: Determine what the current account balance should equal. & 21,600 & Debit & 21,600 & \\ \hline \multicolumn{3}{|l|}{ Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.} & & \\ \hline Adjusting Entry & Debit & Credit & & \\ \hline Rent expense & 10,800 & & & \\ \hline Prepaid rent & & 10,800 & & \\ \hline \end{tabular}