The balance in the prepaid rent account before adjustment at the end of the year is $12,324, which represents 12 months' rent paid on December 1. The adjusting entry required on December 21 is O debit Prepaid Rent, $11,297, credit Rent Expense, $1,027 Odebit Prepaid Rent $1,027, credit Rent Expense, $1,027 O debit Rent Expense, $1,027, credit Prepaid Rent, $1,027 debit Rent Expense, $11,297, credit Prepaid Rent, $1,027