On June 1 Team Snap paid $54,000 to NYC Realty for 12 months of rent beginning June 1. The company did the correct recording on June 1. If financial statements are prepared on December 31, the adjusting entry to be made is:

A. Increase in Prepaid Rent $54,000; decrease in Cash $54,000
B. Increase in Prepaid Rent $31,500; Increase in Rent Expense $31,500
C. Decrease in Prepaid Rent $31,500; Increase in Rent Expense $31,500
D. Decrease in Prepaid Rent $54,000; Increase in Rent Expense $54,000