Problem 3-3 Prepare adjusting entries (L.O. 4) Hillside Apartments, Inc., adjusts and closes its books each December 31. Assume the accounts for all prior years have been properly adjusted and closed. Following are some of the company's account balances prior to adjustment on December 31,2012: HILLSIDE APARTMENTS, INC. December 31,2012 Debits Credits Prepaid Insurance Supplies on Hand Buildings Accumulated Depreciation-Buildings Unearned Rent $7,500 7,000 255,000 $96,000 2,700