Problem 1 - Adjusting Entries (15 points) The following information for Kance Company is available on July 31, 2020, the end of a monthly accounting period. 1. Kance Company purchased a 2-year insurance policy on April 1, 2020, and debited Prepaid Insurance for $5,600. 2. On June 1, 2020, a tenant in an apartment building owned by Kance Company paid $6,800, which represents six months' rent in advance. The amount received was credited to the Unearned Rent account. 3. On July 1, 2020, the balance in the Office Supplies account was $300. During July, office supplies costing $650 were purchased. A physical count of office supplies at July 31 revealed that there was $280 still on hand. 4. On March 31, 2020, Kance Company purchased a delivery van for $80,000. It is estimated that the annual depreciation will be $9,000. Instructions: For each situation given indicate for Kance Company for the month of July (1)the type of adjustment (prepaid expense, unearned revenue, accrued revenue, accrued expense): (2) the status of the accounts before adjustment (overstated or understated); (3) Prepare the necessary adjusting journal entries