On October 31, a company rented out office space and received from the tenant, a $2,580 payment in advance, for six months' rent and credited Unearned Revenue. The company has a December 31 year end and prepares adjusting entries annually. Prepare the December 31 adjusting entry. n On July 1, a company purchased equipment costing $700 on account. This transaction was recorded as a debit to Supplies and a credit to Accounts Payable for $7,000. Prepare the correcting entry. Do NOT reverse the original entry