5.On July 1, Runner's Sports Store paid $16,000 to Corona Realty for 4 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by Runner's Sports Store is a.Debit Rent Expense, S4,000; Credit Prepaid Rent, $4,000. b. Debit Prepaid Rent, $3,500; Credit Rent Expense, $3,500. c.Debit Rent Expense, $3,500; Credit Prepaid Rent, $3,500. d.Debit Rent Expense, $14,000; Credit Prepaid Rent, $14,000 6. The balance in the Prepaid Rent account before adjustment at the end of the year is $21,000, which represents three months' rent paid on December 1. The adjusting entry required on December 31 is to a.debit Rent Expense, $7,000; credit Prepaid Rent, $7,000. b.debit Rent Expense, $14,000; credit Prepaid Rent S14,000. c.debit Prepaid Rent, $7,000; credit Rent Expense, $7,000. d.debit Prepaid Rent, $14,000; credit Rent Expense, $14,000. 7. Meat Puppets Company purchased equipment for $7,200 on December 1. It is estimated that annual depreciation on the equipment will be $1,440. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: a. Debit Depreciation Expense, $1,800; Credit Accumulated Depreciation, $1,800. b.Debit Depreciation Expense, S150; Credit Accumulated Depreciation, S150. c.Debit Depreciation Expense, $120; Credit Accumulated Depreciation, $120. d.Debit Equipment, S7,200; Credit Accumulated Depreciation, S7,200. 8.REM Real Estate received a check for $27,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full S27,000. Financial statements will be prepared on July 31. REM Real Estate should make the following adjusting entry on July 31: a.Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, S4,500. b.Debit Rent Revenue, $4,500; Credit Uneamed Rent Revenue, $4,500. c.Debit Unearned Rent Revenue, $27,000; Credit Rent Revenue, $24,000. d.Debit Cash, $27,000; Credit Rent Revenue, $27,000. 9.Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,200 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be a. Debit Supplies Expense, $5,800; Credit Supplies, S5,800. b. Debit Supplies, S5,100; Credit Supplies Expense, $5,100. c. Debit Supplies Expense, S5,100; Credit Supplies, $5,100. d. Debit Supplies, S1,900; Credit Supplies Expense, S1,900