Rent: The office rent is $5,000 per calendar month and is paid in advance on the 7th day of each month. So for example, we paid $5,000 on 7 June 2023 and that was for rent for the period from 8 June 2023 to 7 July 2023. The rent will be increasing to $6,000 per calendar month from 8 August 2023.

Utilities: The utilities are usually $1,500 per month and are paid in arrears. The last payment was made on Monday 12 June 2023 and related to the utilities used during the month of May 2023. The June 2023 utilities were $1,500 and were not paid until 12 July 2023.

Requirements:

a. Prepare the Journal entry regarding of accrued or prepaid expenses.