Arnez Company's annual accounting period ends on December $31.$ The following information concerns the adjusting entrles to be recorded as of that date.

a$.$ The Office Supplies account started the year with a $$3,800$ balance. During the year, the company purchased supplies for $$15,694,$ which was added to the Office Supplies account. The Inventory of supplies avallable at December $31$ totaled $$3,344.$

b$.$ The Prepaid Insurance account had a $$26,520$ debit balance at December $31$ before adjusting for the costs of any explred coverage for the year. An analysis of prepaid insurance shows that $$19,134$ of unexpired insurance coverage remains at year$-$end.

c$.$ The company has $15$ employees, who earn a total of $$1,600$ in salarles each working day. They are pald each Monday for thelr work In the five$-$day workweek ending on the prevlous 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 pald holiday, they will be pald salarles for five full days on Monday, January $6$ of next year.

d$.$ The company purchased a bullding at the beginning of this year. It cost $$980,000$ and is expected to have a $$45,000$ salvage value at the end of its predicted $35-$year life. Annual depreciation is $$26,714.$

e$.$ Since the company is not large enough to occupy the entire bullding it owns, It rented space to a tenant at $$3,300$ per month, starting on November $1.$ The rent was pald on time on November $1,$ and the amount recelved was credited to Rent Revenue. However, the tenant has not pald 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 pald five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Revenue account. Assume no other adjusting entrles are made during the year.

Required:

Use the Information to prepare adjusting entries as of December $31$

Prepare journal entrles 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.

Required $1$

Use the information to prepare adjusting entries as of December $31.$

Journal entry worksheet

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The Office Supplies account started the year with a $$3,800$ balance. During the year, the company purchased supplies for $$15,694,$ which was added to the Office Supplies account. The inventory of supplies available at December $31$ totaled $$3,344.$

Note: Enter debits before credits.

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