Problem 1: Read the description of following transaction that took place in January for Paulo Consulting Services. Journalize the necessary adjusting entries for January. Keep in mind adjustments are made at the end of a month. A. Equipment purchased on January 1 for $24,000 has an estimated useful life of 5 years with no salvage value. Depreciation is computed using the straight-line method. B. Signed a 3-month contract for $4,500 prepaid advertising on January 1. C. Prepaid rent for the year on January 1. Rent expired during the month of January, $1,600. D. Purchased supplies for $2,000 on January 1. Inventory of supplies was $1,200 on January 31. Date Accounts Debit Credit