1. Pane discovers that payment of $100,000 for the current year's rent (Jan 1 Dec 31, 2018) was mistakenly recorded as rent expense when the company prepaid it last December, 2017. It should have been recorded as Prepaid Rent. Make the appropriate (a) journal entries to correct the error as of the beginning of the current year and (b) the adjusting entry to recognize the expense for the current year. Note that the adjustment to the beginning Retained Earnings balance should be net of tax. Hint: Credit the Income Tax Payable account for the $30,000 tax effect.