Problems Problem 3-1A Preparing adjusting entries (monthly)-prepaid expenses L04 Impala Window Was counts on its December 31, 2017, unadjusted trial balance: hing Services prepares adjustments monthly and shows the following selected ac- Account Debit Credit Prepaid insurance Prepaid office rent.... Prepaid subscriptions.. Prepaid equipment rental25,200 3,600 21,000 ..1,260 Required Prepare the required monthly adjusting entries at December 31, 2017, based on the following additional information: a. The remaining balance in Prepaid Insurance was for a six-month insurance policy purchased for $7,200 and in effect on September 1, 2017 b. $4,800 of the balance in Prepaid Office Rent had not been used as at December 31, 2017. c. $1,100 of the balance in Prepaid Subscriptions had been used as at December 31, 2017. d. The company paid $32,400 on April 1, 2017, to rent equipment for a three-year period beginning April 1,2017. Analysis Component: If the above adjustments were not recorded, identify the types of accounts that would be affected and if they would be over-or understated. An asterisk (") lidentifies assignment material based on Appendix 3A or Appendix 38 203