Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $24,000 ($2,000/month) in advance on October 1.

Required:

1. 1.&2. Record the necessary entries in the Journal Entry Worksheet below.

2. 3. Calculate the year-end adjusted balances of prepaid rent and rent expense (assuming the balance of Prepaid Rent at the beginning of the year is $0).