The balance in the prepaid rent account before adjustment at the end of the year is $11,304, which represents 12 months' rent paid on December 1. The adjusting entry required on December 31 is debit Prepaid Rent, $10,362, credit Rent Expense, $942 debit Rent Expense, $10,362, credit Prepaid Rent, 5942 debit Prepaid Rent, $942, credit Rest Expense, 5942 deht Rent Expense. $942, credit Prepaid Rent, 5942