1 Arnez Company's annual accounting period ends on December 31, 2017. The following Information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $4.000 balance. During 2017, the company purchased supplies for $13.400. which was added to the Office Supplies account. The Inventory of supplies available at December 31, 2017, totaled $2554 b. An analysis of the company's Insurance polices provided the following facts. 18 pointa . cook Policy Months of Coverage Date of Purchase April 1, 2015 April 1, 2015 August 1, 2013 Cost $14,420 12,960 C 36 12 Dei The total premium for each policy was paid in full for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were property recorded in al prior years.) C. The company has 15 employees, who earn a total of $1.960 in salaries each working day. They are paid each Monday for thelr work In the five-day workweek ending on the previous Friday. Assume that December 31, 2017, 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, 2012. d. The company purchased a bullding on January 1, 2017. It cost $960.000 and is expected to have a $45.000 salvage value at the end of its predicted 30-year life. Annual depreciation is $30.500. e. Since the company is not large enough to occupy the entire bullding it owns. It rented space to a tenant at $3.000 per month, starting on November 1, 2017. The rent was paid on time on November 1, and the amount received was created to the Rent Earned account. 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 15. The tenant has agreed not to fall behind again 1. On November , the company rented space to another tenant for $2.800 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 Required: 1. Use the information to prepare adjusting entries as of December 31, 2017 2 Prepare journal entries to record the first subsequent cash transaction in 2018 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, 2017. View trancation lit Journal entry worksheet 1 The Office Supplies account started the year with a $4,000 balance. During 2017, the company purchased supplies for $13,400, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $2,554. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal
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