Exercise 2-16A Effect of an error on financial statements LO 2-6, 2-8 On April 1. Year 1, Maine Corporation paid $9,800 cash in advance for a one-year lease on an office building. Assume that Maine records the prepaid rent as an asset and that the books are closed on December 31. Required a. Show the payment for the one-year lease and the related adjusting entry to recognize rent expense in the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) MAINE CORPORATION Accounting Equations for Year 1 Stockholders' Equity Common Stock Assets Event Retained Earnings Cash Prepaid Rent- Paid rent in advance 9.800 (9.800) Adjusting rent expense Totala (9.800) 9.800