tructions\ a. Prepaid building rent for 1 year on April 1 by paying

$6,600

. Prepaid rent was debited for the amount paid.\ b. Prepaid 12 months' insurance on October 1 by paying

$4,320

. Prepaid insurance was debited.\ c. Purchased

$5,490

of office supplies on October 15 , debiting supplies for the full amount. There were no of\ 15. Office supplies costing

$1,170

remain unused at December 31 .\ d. Paid

$720

for a 12-month service contract for repairs and maintenance on a computer. The contract begins November 1 . The full amount of the payment was debited to prepaid repairs and maintenance.\ Required:\ Prepare journal entries to record the payment of cash for each transaction.\ Prepare adjusting entries for the prepayments at December 31.\ Conceptual Connection: For all of the above items, assume that the accountant failed to make the adjusting entries. What would be the effect on net income?

ructions a. Prepaid building rent for 1 year on April 1 by paying $6,600. Prepaid rent was debited for the amount paid. b. Prepaid 12 months' insurance on October 1 by paying $4,320. Prepaid insurance was debited. 15. Office supplies costing $1,170 remain unused at December 31 . d. Paid $720 for a 12 -month service contract for repairs and maintenance on a computer. The contract begins November 1 . The full amount of the payment was debited to prepaid repairs and maintenance. Required: 1. Prepare journal entries to record the payment of cash for each transaction. 2. Prepare adjusting entries for the prepayments at December 31. 3. Conceptual Connection: For all of the above items, assume that the accountant failed to make the adjusting entries. What wo be the effet on net income