Problem 12-1: Journalize adjusting entries for prepaid (deferred) expenses.

Journalize the adjusting entries for Rolando Associates for the following:

1. On May 31, Rolando Associates' Trial Balance shows a debit balance in the Office Supplies account of $375. An inventory on May 31 shows that $75 worth of supplies are on hand.
2. The Prepaid Insurance account has a debit balance of $1,000. The insurance was purchased on March 1 for $1,200 and represents one year's coverage. Insurance expense has not been recorded for May.
3. The Prepaid SubscriptionBusiness Reports account has a debit balance of $110. The subscription was purchased on April 1 for $120 and represents one year's coverage. Subscription expense has not been recorded for May.
4. The Prepaid InterestHankin Bank account has a debit balance of $150. Interest expense of $75 for May has not been recorded.

GENERAL JOURNAL
DATE		ACCOUNTS AND EXPLANATION	REF.	DEBIT	CREDIT
May	31
		To adjust balance of office supplies account
	31
		To adjust balance of prepaid insurance account
	31
		To adjust balance of prepaid subscription account
	31
		To adjust balance of prepaid interest account