On November 25, 2013, the company paid $24,000 rent in advance for a six-month period (December 2013 through May 2014). On December 31, 2013, the adjustment for expired rent would include

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The adjustment for expired rent would involve recognizing the portion of prepaid rent that has been used up. For one month (December), $4,000 of the $24,000 prepaid rent has expired, so a $4,000 credit to Prepaid Rent is needed to reduce the asset account.

On November 25, 2013, the Company Paid $24,000 Rent in Advance