On December 30, 2014, Sheffield Industries paid $12,000 cash to its landlord to rent office space for the six-month period beginning January 1, 2015. How would Sheffield record this transaction? | 1) Debit Prepaid Insurance for $12,000 and credit Cash for $12,000. 2) Debit Cash for $12,000 and credit Prepaid Rent for $12,000. 3) Debit Cash for $12,000 and credit Rent Expense for $12,000. 4) Debit Prepaid Rent for $12,000 and credit Cash for $12,000. 5) Debit Rent Expense for $12,000 and credit Cash for $12,000