On September 1, 2022, a commercial tenant paid its landlord $18,000 in cash as an advance rent payment on its store location. The six-month lease period ends on February 28, 2023, at which time the contract may be renewed.

Required:
a. Use the horizontal model or write the journal entry to record the six-month advance rent payment on September 1, 2022.
b. Use the horizontal model or write the adjusting entry that will be made at the end of every month to show the amount of rent “used” during the month.

c. Calculate the amount of prepaid rent that should be reported on the December 31, 2022, balance sheet with respect to this lease.