c. Prepaid Rent. On September 1 of the current year, the company prepaid $43,200 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $43,200. Step 1: Determine what the current account balance equals. DR or Prepaid Rent CR? $ 43,200 Debit 43,200 0 Step 2: Determine what the current account balance should equal. $ 43,200 Debit 43,200 Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Rent expense Prepaid rent Debit Credit