The journal entry to adjust the prepaid rent account for rent used during the period results in an increase in expenses and a decrease in stockholders' equity.

Prepaid Rent

Prepaid rent refers to payments made for rent in advance before it is due, recorded as an asset on the balance sheet until the period to which it applies passes.

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities, which is the ownership interest of shareholders in a company.

Expenses

The outflow of money to another person or company to pay for an item or service, or for a category of costs.