On September 1, 2020, Royal Corp. made the annual lease payment of $24,000 for its fleet of delivery trucks. The payment covered the period of September 1, 2020 to August 31, 2021. Assuming the entire amount had originally been debited to Prepaid Lease, the required adjustment at December 31, 2020 is:

DR Lease Expense $8,000 CR Prepaid Lease $8,000

DR Prepaid Lease $16,000 CR Lease Expense $16,000

DR Lease Expense $16,000 CR Prepaid Lease $16,000

DR Prepaid Lease $8,000 CR Lease Expense $8,000