- Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries to be
recorded as of that date
a. The Office Supplies account started the year with a $3,150 balance. During the year, the company purchased supplies for $13.010,
which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $2.772
b. The Prepaid Insurance account had a $30,624 debit balance at December 31 before adjusting for the costs of any expired coverage
for the year. An analysis of prepaid insurance shows that $22,041 of unexpired insurance coverage remains at year end
c. The company has 15 employees, who earn a total of $2,100 in salaries each working day. They are paid each Monday for their work
in the five-day workweek ending on the previous Friday. Assume that December 31 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 paid salaries for five full days on Monday, January
6 of next year
d. The company purchased a building at the beginning of this year. It cost $685,000 and is expected to have a $45,000 salvage value
at the end of its predicted 25-year life. Annual depreciation is $25,600.
e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,500 per month,
starting on November 1. The rent was paid on time on November 1, and the amount received was credited to Rent Revenue
However, the tenant has not paid 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 31
f. On November 1, the company rented space to another tenant for $2,265 per month. The tenant paid five months' rent in advance
on that date. The payment was recorded with a credit to the Unearned Revenue account.
Assume no other adjusting entries are made during the year.

Required:
1.use the info to prepare adjusting entries as dec 31
2. Prepare journal entries to record the first subsequent cash transaction in January of the next year for parts c and e