Wayne Enterprises has the following transactions at the end of the month accounting cycle:

1) Office Supplies asset account balance was $12,000 at the beginning of the month. Office Supplies asset account was $8,000 at the end of the month.

2) Prepaid Rent asset account balance was $75,000 at the beginning of the month. Wayne prepaid one year of rent, this is the end of the third month of the agreement (two months have already been used).

3) Payday is not until the next Friday, which is four days away. All of Wayne's employees work 10 days on and four days off. Wayne's has 100 total employees. Wayne has 10 management employees that earn $72,000 paid 26 times a year. The rest of Wayne's employees earn $15.00/hr for regular pay and $22.50/hr for any hour worked over 8 hours in a day. This is a busy time of year and these employees have been working 10 hour days.

In your post answer the following questions:

1) What accounts are affected in these three transactions?

2) What are the amounts that are important for the month end adjusting entries?

3) Prepare adjusting entries for each transaction.

4) What is the prepaid rent account balance after adjusting?