The balance in the prepaid rent account before adjustment at the end of the year is $14,232, which represents 12 months' rent paid on December 1. The adjusting entry required on December 31 is a debit Rent Expense, $13,046, credit Prepaid Rent, $1,186 b. debit Prepaid Rent, $1,186, credit Rent Expense, $1,186 C. debit Prepaid Rent, $13,046, credit Rent Expense, 51,156 d. debit Rent Expense, $1,186, credit Prepaid Rent, $1,186 Smokey Company purchases a one-year insurance policy on July 1 for $13,596. The adjusting entry on December 31 is a debit Prepaid Insurance, $12,463 and credit Cash, $12,463 b. debit Insurance Expense, $13,596 and credit Prepaid Insurance, $13,596 c. debit Insurance Expense, $1,133 and credit Prepaid Insurance, $13,596 d. debit Insurance Expense, $6,798 and credit Prepaid Insurance, $6,798