The balance in the prepaid rent account before adjustment at the end of the year is $12,696, which represents 12 months' rent paid on December The adjusting entry required on December 31 is Ca. debit Prepaid Rent, $1,058, credit Rent Expense, $1,058 b. debit Rent Expense, $1,058, credit Prepaid Rent, $1,058 c. debit Rent Expense, $11,638, credit Prepaid Rent, $1,058 Od. debit Prepaid Rent, $11,638, credit Rent Expense, $1,058