Consider the following independent situations at Doctember 31 View the silivations. (Fincord debita fint, then credta select the oxplanation on the last line of the journal entry table) a. On Mayc1, a business colected 514,400 rent in advance, debiting Cash and credting Unearned Reverve. The tenant was poying one year's rent in advance On December 31 , the business mus account for the amount of tent at has oamed. Independent Situations a. On May 1, a business collected $14,400 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has earned. b. The unadjusted balance of the Supplies account is $2,200. Supplies on hand total $800. c. The business purchased equipment on September 1 at a cost of $35,400 with expected useful life of four years. The residual value of the equipment is $1,800. d. The business receives $15,000 on October 1 for 10 -month service contract for the period October 1 through July 31. (When the cash was received on October 1 , assume that a liability account was credited. Assume services are performed evenly each month throughout the term of the contract.) e. On November 1 , when the business prepaid $1,200 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. a. On May.1, a business collected $14,400 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying on account for the amount of rent it has eamed. Depreciation Expense-Equipment Equipment Insurance Expense Prepaid Insurance Prepaid Rent Rent Expense Rent Revenue Service Revenue Supplies Supplies Expense Unearned Revenue Accounts Receivable Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment Insurance Expense