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Forrester Company Signed a Two-Year Lease on July 1, and Paid

Question 40

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Forrester Company signed a two-year lease on July 1, and paid the $17,400 total rent in advance. Forrester recorded the transaction as an increase to Prepaid Rent and a decrease to Cash. What adjustment should Forrester make on December 31 (no previous adjustment has been made)?
Forrester Company signed a two-year lease on July 1, and paid the $17,400 total rent in advance. Forrester recorded the transaction as an increase to Prepaid Rent and a decrease to Cash. What adjustment should Forrester make on December 31 (no previous adjustment has been made)?

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