Arnez Co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. The company?s annual accounting period ends on December 31, 2015. The following information concerns the adjusting entries to be recorded as of that date.

a.	The Office Supplies account started the year with a $2,600 balance. During 2015, the company purchased supplies for $10,738, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2015, totaled $2,288.

b.	An analysis of the company's insurance policies provided the following facts.

Policy	Date of Purchase	Months of Coverage	Cost
A	April 1, 2014	24	$	10,824
B	April 1, 2015	36		9,576
C	August 1, 2015	12		8,424

	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 properly recorded in all prior years.)

c.

The company has 15 employees, who earn a total of $2,600 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, 2015, 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, 2016.

d.	The company purchased a building on January 1, 2015. It cost $975,000 and is expected to have a $45,000 salvage value at the end of its predicted 40-year life. Annual depreciation is $23,250.

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, 2015. The rent was paid on time on November 1, and the amount received was credited 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.

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 Rent account.

Arnez Co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. The company's annual accounting period ends on December 31, 2015. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $2,600 balance. During 2015, the company purchased supplies for $10,738, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2015, totaled $2,288. b. An analysis of the company's insurance policies provided the following facts. Policy A B C Date of Purchase April 1, 2014 April 1, 2015 August 1, 2015 Months of Coverage 24 36 12 Cost $ 10,824 9,576 8,424 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 properly recorded in all prior years.) c. The company has 15 employees, who earn a total of $2,600 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, 2015, 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, 2016. d. The company purchased a building on January 1, 2015. It cost $975,000 and is expected to have a $45,000 salvage value at the end of its predicted 40-year life. Annual depreciation is $23,250. 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, 2015. The rent was paid on time on November 1, and the amount received was credited 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. 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 Rent account. Required: 1. Use the information to prepare adjusting entries as of December 31, 2015. Transaction General Journal Debit Credit A B C D E F 2. Prepare journal entries to record the first subsequent cash transaction in 2016 for parts c and e. 1. Record payment of accrued and current salaries. 2. Record the receipt of two months rent. Date General Journal Debit Credit