The balance in the Prepaid Rent account before adjustment at the end of the fiscal year is $5,000, which represents five months of rent which was paid on December 1. The year-end adjusting entry required on December 31 is O debit Rent Expense, $1.000; credit Prepaid Rent, $1,000 debit Rent Expense, $5,000; credit Prepaid Rent, $5,000 debit Rent Expense, $4,000; credit Prepaid Rent, $4,000 debit Prepaid Rent. $1,000; credit Rent Expense $1,000