CHAPTER 3 Adjusting Accounts for Financial Statements ise 3-3 Preparing adjusting entries (annual)-prepaid expense L04 Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial state ber 31, 2017 year-end. a. On October 1,2017, Dr. Chan prepaid $8,000 for four months of rent. b. On November 1, 2017, Dr. Chan prepaid $480 to renew the clinic's magazine subscriptions The subscription is for one year. e. On December 1, 2017, Dr. Chan pays $3,000 for supplies. At the end of the year, $2,000of supplies had not been used. Required For each transaction, record the initial journal entry and the adjusting entry required on December 31, 2017