Packard Company prepaid $$1,400$ for April's rent on March $31.$ How does this transaction affect the Packard Company's balance sheet in the month of March?

Decrease cash by $$1,400$; decrease stockholders' equity by $$1,400$

Decrease cash by $$1,400$; decrease prepaid rent by $$1,400$

Decrease cash by $$1,400$; increase rent expense by $$1,400$

Decrease cash by $$1,400$; increase prepaid rent by $$1,400$