Response to the following problem:
Hernandez Company rents out a portion of its building to Crider Company for $1,000 per month. On August 1, 2010, Crider Company paid Hernandez Company $12,000 for one years' rent in advance.
Prepare journal entries for Hernandez Company to record the collection of rent and the related year-end adjusting entry.
Make sure you use enough details to support your answer.