Refer to the information in BE3–7. Determine the financial statement effects for 

(1) The payment of rent in advance on October 1 and 

(2) The adjusting entry for rent expired by December 31.

Data from in BE3-7

Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $25,200 ($2,100/month) in advance on October 1.