Answer the following questions about prepaid expenses:

a. On November 1, World Travel Ltd. prepaid \(\$ 6,000\) for three months' rent. Give the adjusting entry to record rent expense at December 31. Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at December 31. World Travel adjusts the accounts only at December 31.

b. On December 1, World Travel paid \(\$ 800\) for supplies. At December 31, World Travel has \(\$ 500\) of supplies on hand. Make the required journal entry at December 31. Post all accounts to the accounts and show their balances at December 31.