On March 31, the Java Joe's Coffee Shop paid $16,500 for a full year of rent beginning on April 1. The rent payment was appropriately recorded in the Cash and Prepaid Rent accounts. If financial statements are prepared on April 30, the journal entry to record the adjustment would be:

Multiple Choice

• Debit Rent expense and credit prepaid rent for $1,375.

• Debit prepaid rent and credit rent expense for $16,500.

• Debit prepaid rent and credit rent expense for $1,375.

• Debit Rent expense and credit prepaid rent for $16,500.