Problem 1: Adjusting Entries (3 points each, 24 points total) Provide the necessary adjusting entry. If there is no adjusting entry, write "No JE". You will be graded on neatness, format, and correct JE's. Assume year-end is on 12/31 unless otherwise noted. Cathy's Cat Care Company (C ) runs a cat motel and grooming facility. She rents one building for her business. Prepare the requested journal/adjusting entries. You will be graded on neatness, format, and if your answers are correct. Partial list of accounts: Accumulated Depreciation $ 1,750 Office Supplies 2,200 Office Supplies Expense 300 Prepaid Auto Insurance 4.860 1. C' prepared an inventory of supplies at year end. Only $290 of office supplies remains on hand as of 12/31/X]. Prepare the adjusting entry as of 12/31/X1. 2. On May 1, 20x1 the C* paid for one year of rent for $18,000 cash. They originally booked the entire rent to Rent Expense. Prepare the adjusting entry for 12/3 1/x1. 3. Using the information in #2, provide the adjusting entry on 12/3 1/x2. (Assume no other adjustments were made during the year.) 24. Assume on May 1, 20x1 the company paid for one year of rent for $18,000 cash and they original booked the entire amount to Prepaid Rent. Prepare the adjusting entry for 12/3 1/x1. 5. Using the information in #4, provide the adjusting entry on 12/31/x2. 6. A customer's show cat turned purple when Cathy was washing it. Cathy estimates that she will be sued and have to pay $6,000. 7. Cathy has estimated $275 of depreciation must be booked. 8. C' purchased an 12-month auto insurance policy on 3/1/XI for $4,860. Prepare the necessary adjusting entry on 12/31/X1