1) Hobbs Inc. prepaid 8 months of rent, a total of $5,600, on November 1. Hobbs did not make any adjustments to the prepaid rent expense account until December 31, its year-end. a. Give Hobbs's journal entry on November 1 to record the prepayment of rent. b. Give Hobbs's required adjusting journal entry on December 31. c. What amount will appear for rent expense on Hobbs Income Statement for the year? d. What amount will appear for prepaid rent expense on Hobbs' December 31 Balance Sheet? 2) Workout Company runs a chain of health clubs. Most customers pay $60 in advance for a year-long membership, but customers can also "pay as they go," by paying $5 per workout every time they visit one of the clubs. Give Workout's journal entries for the following situations. a. Six customers visit health clubs under the "pay as you go program b. Two customers pay in advance for year-long memberships. c. Four customers each use up 7 months of their year-long memberships (make adjusting entry) 3) Johnny Corp. earned $200,000 of revenue this year. Of this amount, 80% has been collected in cash, and the remaining 20% is still accounts receivable. Johnny also had $140,000 of expenses. Of this amount. 90% has been paid in cash, and the remaining 10% is still accounts payable. a. Under accrual accounting, what amount of revenue should Johnny record for the year? b. Under accrual accounting, what amount of expenses should Johnny record for the year? c. Under accrual accounting, what amount of profit would Johnny have for the year? Which financial statement shows revenues, expenses, and profits