Independent Situations a. On July 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 $2,400. Supplies on hand total $700. c. The business purchased equipment on September 1 at a cost of $21,700 with expected useful life of four years. The residual value of the equipment is $2,500. d. The business receives $9,000 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 October 1 , when the business prepaid $9,600 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Consider the following independent situations at December 31: Journalize the adjusting entry needed on December 31 for each situation assuming the company only records adjusting entries at the end of the year. Use the letters to label the journal entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. On July 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