c. Prepaid Rent. On September 1 of the current year, the company prepaid $25,200 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $25,200.DR or CR?Prepaid RentStep 1: Determine what the current account balance equals.$25,200Debit25,20025,200Step 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.