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West Company Signed a One-Year Lease on April 1, and Paid

Question 39

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West Company signed a one-year lease on April 1, and paid the $11,400 total year's rent in advance. West recorded the transaction as increase to Prepaid Rent and a decrease to Cash.
What adjustment should West make on December 31 (no previous adjustment has been made)?
West Company signed a one-year lease on April 1, and paid the $11,400 total year's rent in advance. West recorded the transaction as increase to Prepaid Rent and a decrease to Cash. What adjustment should West make on December 31 (no previous adjustment has been made)?

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