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Required information [The following information applies to the questions displayed below.] a. M\&R Company provided $3,900 in services to customers in December, which are not yet recorded. Those customers are expected to pay the company in January following the company's year-end. b. Wage expenses of $2,900 have been incurred but are not paid as of December 31 . c. M\&R Company has a $6,900 bank loan and has incurred (but not recorded) 8% interest expense of $552 for the year ended December 31. The company will pay the $552 interest in cash on January 2 following the company's year-end. d. M\&R Company hired a firm that provided lawn services during December for $690. M\&R will pay for December lawn services on January 15 following the company's year-end. e. M\&R Company has earned $390 in interest revenue from investments for the year ended December 31 . The interest revenue will be received on January 15 following the company's year-end. f. Salary expenses of $1,090 have been earned by supervisors but not paid as of December 31 . For each of the above separate cases, analyze each adjusting entry by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including (+) increase or () decrease) for each transaction or event. 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 $3,700 balance. During the year, the company purchased supplies for $15,281, which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $3,256. b. The Prepaid Insurance account had a $43,896 debit balance at December 31 before adjusting for the costs of any expired coverage for the year. An analysis of prepaid insurance shows that $31,444 of unexpired insurance coverage remains at yearend. c. The company has 15 employees, who earn a total of $1,700 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 $935,000 and is expected to have a $45,000 salvage value at the end of its predicted 30 -year life. Annual depreciation is $29,667. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $3,300 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 $2,990 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 information to prepare adjusting entries as of December 31. 2. Prepare journal entries to record the first subsequent cash transaction in January of the next year for parts c and e. Complete this question by entering your answers in the tabs below. Use the information to prepare adjusting entries as of December 31. Journal entry worksheet Journal entry worksheet The Office Supplies account started the year with a $3,700 balance. During the year, the company purchased supplies for $15,281, which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $3,256. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Note: Enter debits before credits. Journal entry worksheet Journal entry worksheet The company has 15 employees, who earn a total of $1,700 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. Note: Enter debits before credits. Journal entry worksheet On November 1 , the company rented space to another tenant for $2,990 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. Journal entry worksheet Record the payment of accrued and current salaries. Journal entry worksheet Record the receipt of two months rent on January 31. Note: Enter debits before credits. Note: Enter debits before credits