Part B: Adjusting 6. Panda Comoration paid cash of $60,000 on June 1, 2014 for one year's rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2014 adjusting entry is a. Debit Prepaid Rent and credit Rent Expense, $25,000. b. Debit Prepaid Rent and credit Rent Expense, $35,000. c. Debit Rent Expense and credit Prepaid Rent, $35,000. d. Debit Prepaid Rent and credit Cash, $25,000. e. Debit Rent Expense and credit Prepaid Rent, $30,000. The Supplies Expense account was debited by the Dolphin Company in the amount of 7. $1,240 f or office supplies purchased during the first year of operations. At year-end, the office supplies on hand were counted and the cost of those on-hand items was $880. The appropriate adjusting entry would: a. b. c. d. e. Increase assets by $880 Have no effect on net income. Decrease expenses by $360. Increase expe Increase expenses by $360. nses by $880