Ryan Co. paid $12,000 cash to Delta Property Rental on August 1, 2020 for 6-month office rental from August 1, 2020 through January 31, 2021. Ryan Co.'s fiscal year-end is December 31 and it only makes annual adjusting entries. Which of the following correctly describes the effect of the December 31, 2020 adjusting entry on Ryan Co.'s financial statements? Multiple Choice Rent expense increases $2,000 Net income decreases $10.000 Net income decreases $2,000 O O Prepaid rent decreases $2,000