Fargo Company paid in full for an annual rental lease on September 1 in the amount of $19,320 and immediately made an entry debiting Rent Expense and crediting Cash for the entire amount. Fargos year end is December 31.

Required 1: What is the proper balance of Rent Expense showing on the year end income statement? $ __________

Required 2: What is the proper amount of Prepaid Rent showing on the year end balance sheet? $ __________