Prime Realty paid $2,400 rent on a building in advance for two years on May 1. The amount that should be recorded as rent expense as of December 31 is:

a. $800

b. $2,400

c. $1,200

d. $525

Recording the adjustment for supplies will:

a. increase the total liability and increase the total expenses

b. increase the total assets and increases the total expenses

c. decrease the total assets and increases the total expenses

d. decrease the total assets and decreases the total expenses