Problem 3-1A Preparing adjusting entries (monthly)-prepaid expenses L04 Willow Window Washing Services prepares adjustments monthly and shows the following selected accounts on its December 31, 2020, unadjusted trial balance: Credit Account Prepaid insurance Prepaid office rent. Prepaid subscriptions... Prepaid equipment rental Debit $ 3.720 23,000 1,300 26,320 Required Prepare the required monthly adjusting entries at December 31, 2020, based on the following additional information: a. The remaining balance in Prepaid Insurance was for a six-month insurance policy purchased for $7,440 and in effect on September 1, 2020. b. $5,200 of the balance in Prepaid Office Rent had not been used as at December 31, 2020. c. $1,140 of the balance in Prepaid Subscriptions had been used as at December 31, 2020. d. The company paid $33,840 on April 1, 2020, to rent equipment for a three-year period beginning April 1, 2020. Analysis Component: If the above adjustments were not recorded, identify the types of accounts that would be affected and if they would be over- or understated