eBook Hint Ask Print References 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. 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. Rent expense Prepaid rent $ DR or CR? 45,600 Debit Debit Prepaid Rent 45,600 45,600

\begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{ Hirk } & \\ \hline & \multicolumn{6}{|c|}{\begin{tabular}{l} c. Prepaid Rent. On September 1 of the current year, the company prepaid $45,600 for two years of ront for facilities being \\ occupied that day. The company debited Prepaid Rent and credited Cash for $45,600. \end{tabular}} \\ \hline Ask & & & & & & \\ \hline \multirow{2}{*}{\begin{tabular}{l} Print \\ References \end{tabular}} & & & & DR or CR? & \multicolumn{2}{|c|}{ Prepaid Rent } \\ \hline & Step 1: Determine what the current account balance equals. & $ & 45,600 & Debit & 45,600 & \multirow[b]{2}{*}{45,600} \\ \hline & & & & & & \\ \hline & Step 2: Determine what the current account balance should equal. & & & Debit & & \\ \hline & \multirow{2}{*}{\multicolumn{3}{|c|}{ Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.}} & & & \\ \hline & & & & & & \\ \hline & Rent expense & & & & & \\ \hline & Prepaid rent & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} c. Prepaid Rent. On September 1 of the current year, the company prepaid $45,600 for two years of rent for facilities being