Amez Company's annual accounting perlod ends on December 31, 2019. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $4,325 balance. During 2019, the company purchased supplies for $17,862, which was added to the Office Supplies account. The Inventory of supplies avallable at December 31, 2019, totaled $3.806.
b. An analysis of the company's Insurance policles provided the following facts. Months of Policy Date of Purchase Coverage 24 Cost A April 1, 2017 April 1, 2018 August 1, 2019 $11,640 10,440 9,248 36 12 The total premlum for each policy was pald in full (for all months) at the purchase date, and the Prepald Insurance account was debited for the full cost. (Year-end adjusting entries for Prepald Insurance were properly recorded in all prior years.)
c. The company has 15 employees, who earn a total of $2.100 In salarles each working day. They are pald each Monday for their work In the five-day workweek ending on the prevlous Friday. Assume that December 31, 2019, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be pald salarles for five full days on Monday, January 6, 2020.
d. The company purchased a bullding on January 1, 2019. It cost $790,000 and is expected to have a $45.000 salvage value at the end of Its predicted 30-year life. Annual depreciation is $24.833.
e. Since the company is not large enough to occupy the entire bullding it owns, It rented space to a tenant at $2600 per month, starting on November 1, 2019. The rent was paid on time on November 1, and the amount recelved was credited to the Rent Earned account. However, the tenant has not pald the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again.
f. On November 1, the company rented space to another tenant for $2.356 per month. The tenant pald five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account Assume no other adjusting entries are made during the year. Required: 1. Use the Informatlon to prepare adjusting entries as of December 31, 2019. 2 Prepare Joumal entries to record the first subsequent cash transaction in 2020 for parts cand e. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the information to prepare adjusting entries as of December 31, 2019. Vlew transaction llat Journal entry worksheet 3 4 5 2.