To take advantage of a zero percent rent increase for the coming year, a company paid, at year-end, $300,000 rent for the first three months of the next year. What would the effect of this transaction on the companys year-end accounting equation of this year?

No net effect on Assets; $300,000 decrease in Liabilities; $300,000 increase in Stockholders Equity

$300,000 increase in Assets; $300,000 increase in Liabilities; No net effect on Stockholders Equity

$300,000 increase in Assets; No net effect on Liabilities; $300,000 increase in Stockholders Equity

No net effect on Assets; No net effect on Liabilities; and No net effect on Stockholders Equity

None of these statements is correct.