Simply Sewing, Inc. had the following account balances on December 31: Retained Earnings, January 1 $50,000 Supplies 8,000 Unearned Sewing Revenue 5,000 Prepaid Rent 12,000 Prepare the following adjusting journal entries for the year end December 31. a) A physical count of supplies at December 31 shows the balance on hand is $3,000. b) The company earned $2,000 of the sewing work that was paid for in advance. c) The prepaid rent listed above was paid for by the company on June 1 and represents one year of rent. It has not been adjusted since it was paid on June 1. Prepare the journal entry to adjust the Prepaid Rent account to the correct amount as of December 31.