Pharoah Corporation paid cash of $132000 on June 1,2025 for one year's rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31,2025 adjusting entry is debit Prepaid Rent and credit Rent Expense, \$55000. debit Rent Expense and credit Prepaid Rent, \$77000. debit Prepaid Rent and credit Cash, $55000. debit Prepaid Rent and credit Rent Expense, $77000. Sandhill Company purchased equipment on November 1, 2025 and gave a 3-month, 12% note with a face value of $91000. The December 31,2025 adjusting entry is to accrue interest on the note is debit Interest Expense and credit Interest Payable, $10920. debit Interest Expense and credit Cash, \$1820. debit Interest Expense and credit Interest Payable, \$2730. debit Interest Expense and credit Interest Payable, \$1820