Question 11 A firm signs a lease in January. Under its terms, the firm has to pay first and lastle, for this month and for December, twelve months in the future. The rent is $4,000 a month, so the firm cuts a cheque to the landlord for $8,000. The bookkeeper makes this entry on January 2 Cr Account Prepaid Rent Rent Expense Bank Dr 4,000 4,000 8.000 When adjusting rent at the end of January, what should happen? Prepaid Rent should be credited $4,000 Prepaid Rent should be debited $4,000 Rent Expense should be credited $4,000 Prepaid Rent should be not be adjusted 11 of 11