1. On June 1, 2019, Cain Company, a new firm, paid $5,760 rent in advance for a six-month period. The $5,760 was debited to the Prepaid Rent account. 2. On June 1, 2019, the firm bought supplies for $7,750. The $7,750 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $3,200 were on hand. 3. On June 1, 2019, the firm bought equipment costing $67,200. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation. Wk. 4 - Apply: Exercise Journal entry worksheet 2 3 Prepare the adjusting entry for prepaid rent. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal