Prepaid Insurance 1.240 . Prepaid Rent. On September 1 of the current year, the company prepaid $30,000 for two years of rent for facilities seing occupied that day. The company debited Prepaid Rent and credited Cash for $30,000 DR or CR? Step 1: Determine what the current account balance equals 30.000 Debit Prepaid Rent 30.000 Step 2: Determine what the current account balance should equal $ 1,250 Debit + 1250 Step 3: Record the December 31 adjusting entry to get from step T to step 2 Adjusting Entry Debit Credit Next >