Hatch Company sublet a portion of its farm at an annual rental of $13,860 beginning on June 1, 2016 to Baca Ranching Company. Baca paid one year's rent in advance. The intern for Hatch Company, a University of New Mexico student, who had no idea how to record anything, recorded the transaction as debit to Prepaid Rent $6,930 and credit to Rent Revenue $6,930. No other entry was made until the calendar-year end. The adjusting entry to correct and adjust the amounts for various accounts on December 31, 2014 for Hatch should be: