120 ing adjusting and banquent journal entries CI 21 PT Arner Co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet ac counts. The company's annual accounting period ends on December 31, 2013. 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. Duning 2013, the company pur chawed supplies for $13,400, which was added to the Office Supplies account. The inventory of sup plies available at December 31, 2013, totaled $2.554. b. An analysis of the company's insurance policies provided the following facts. 1