Prepaid Rent. On September 1 of the current year, the company prepaid $43,200 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $43,200. Prepaid Rent Step 1: Determine what the current account balance equals. 0 Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2