Answer the following questions about prepaid expenses:
a. On July 1, Davis Tree Service prepaid $ 12,000 for six months' rent. Give the adjusting entry to record rent expense at July 31. Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at July 31. Davis adjusts the accounts only at July 31, the end of its fiscal year.
b. On July 1, Davis Tree Service paid $850 for supplies. At July 31, Davis has $400 of supplies on hand. Make the required journal entry at July 31. Then post all amounts to the accounts and show their balances at July 31.