Jack and John each rented adjacent offices beginning on 10/1/X1. Each paid the landlord $12,000 for one year's rent beginning 10/1/x1. Although Jack initially debited rent expense for $12,000, John initially debited prepaid rent for $12,000. Assuming GAAP is followed and the financial statements are prepared correctly, Jack and John's 12/31/x1 financial statements will show O Both Jack and John will have $9,000 of rent expense and $3,000 prepaid rent John with $12,000 more rent expense than Jack Jack with $12,000 more prepaid rent than John O Both Jack and John will have $3,000 of rent expense and $9,000 prepaid rent