Prepaid Rent account? Recording adjustments for accrued and prepaid expense items and unearned income. u.2016, Sean McConnell established his own accounting practice. Selected transactions for the first few days of July follow INSTRUCTIONS 1. Record the transactions on page 1 of the general journal. Omit descriptions. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability 2. Rec ord the adjusting journal entries that must be made on July 31, 2016, on page 2 of the general journal. Omit descriptions RAUSACTIONS July Signed lease for an office and issed Check 101 for $14,700 to pay the rent in odvance fo six months Borrowed money from First National Bank by issing a four-month, 9 percent note for $40,000 received $38,800 because the bank deducted the interest in advance 1 Signed an agreement with Young Corp, to provide accounting and tax services for one year o 7,000 per month, received the entire fee of $84,000 in advance 1 Purchased office equipment for $15,900 from Office Outfiters,isued o two-month, 12 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method Purchased a one-year insurance policy and issued Check 102 for S1,740 to pay the entire premium. Purchased office furniture for $16,080 from Office Warehouse; issued Check 103 for $8,480 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of four years and a S1,200 salvage value. The office furniture will be depreciated using the straight- line method 3 5 Purchased fie supplies for $2,010 with Check 104.Assume $900 of suppies re on hand July 31, 2016. at balance should be reflected in Unearned Accounting Fees at July 31, 2016