Impala Window Washing Services prepares adjustments monthly and shows the following selected accounts on its December 31, 2014, unadjusted trial balance:

Required
Prepare the required monthly adjusting entries at December 31, 2014, based on the following additional information:
a. The remaining balance in Prepaid Insurance was for a six-month insurance policy purchased for $7,200 and in effect on September 1, 2014.
b. $4,800 of the balance in Prepaid Office Rent had not been used as at December 31, 2014.
c. $1,100 of the balance in Prepaid Subscriptions had been used as at December 31, 2014.
d. The company paid $32,400 on April 1, 2014, to rent equipment for a three-year period beginning April 1, 2014.
Analysis Component: If the above adjustments were not recorded, identify the types of accounts that would be affected and if they would be over- or understated.