Exercise 3-4 Preparing adjusting entries (annual)-prepaid expense LO4

Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2023 year-end.

1. On October 1, 2023, Dr. Chan prepaid $10,400 for four months of rent.
2. On November 1, 2023, Dr. Chan prepaid $132 to renew the clinics magazine subscriptions. The subscription is for one year.
3. On December 1, 2023, Dr. Chan pays $1,875 for supplies. At the end of the year, $1,250 of supplies had not been used.

Required: For the above transactions, record the initial journal entry and the adjusting entry required on December 31, 2023.