c. Prepaid Rent. On September 1 of the current year, the company prepaid $45,600 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $45,600. Prepaid Rent Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31, adjusting entry to get from step 1 to step 2