The balance in the prepaid rent account before adjustment at the end of the year is $11040 and represents three months rent paid on December 1. The adjusting entry required on December 31 is: debit Rent Expense, $11040;credit Prepaid Rent, $11040 debit Prepaid Rent $3680credit Rent Expense $3680 debit Prepaid Rent 57360, credit Rent Expense, $7360. debit Rent Expense. $3680, credit Prepaid Rent, $3680