Prepaid Expenses Sunrise Company reported Prepaid Rent of $11,000 and Supplies Inventory of $2,900 on December 31, 2000. During 2001, Sunrise purchased supplies costing $5,000 and had supplies on hand at December 31, 2001, of $3,100. It also prepaid additional rent of

$30,000 during 2001 and had an ending Prepaid Rent balance of $15,000. The Cash balance at January 1, 2001, was

$43,000.

a. Prepare T-accounts for Supplies Inventory, Supplies Expense, and Cash, and post the 2001 beginning balances and transactions to the accounts.

b. Prepare T-accounts for Prepaid Rent and Rent Expense, and post the 2001 beginning balances and transactions to the accounts using the same cash account as in part a.

c. Prepare journal entries to record the purchase of supplies and prepayment of rent and journal entries to record supplies expense and rent expense for 2001.