Arnez Company's annual accounting period ends on December 31, 2018. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $3,450 balance. During 2018, the company purchased supplies for $14,249, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2018, totaled $3,036. b. An analysis of the company's insurance policies provided the following facts. Policy Date of Purchase April 1, 2016 April 1, 2017 August 1, 2018 Months of Coverage 24 36 12 Cost $10,032 8,856 7,632 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 $1,900 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, 2018, 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, 2019, d. The company purchased a building on January 1, 2018. It cost $625,000 and is expected to have a $45,000 salvage value at the end of its predicted 20-year life. Annual depreciation is $29,000. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,800 per month, starting on November 1, 2018. 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 $2,537 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, 2018. 2. Prepare journal entries to record the first subsequent cash transaction in 2019 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, 2018. View transaction list View journal entry worksheet No Transaction Debit Credit 1 a General Journal Office supplies expense Office supplies 3,036 2 b. Insurance expense Prepaid insurance 3 c. Salaries expense Salaries payable 4 d. Depreciation expense-Building Accumulated depreciation-Building 5 e. Rent receivable No Transaction General Journal 1 Debit Credit a. Office supplies expense Office supplies 3,036 2 b. Insurance expense Prepaid insurance 3 C. Salaries expense Salaries payable 4 d. Depreciation expense-Building Accumulated depreciation Building 5 e. Rent receivable Rent earned 6 f. Unearned rent Rent earned Required 1 Required 2 > View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Jan 06 Salaries expense Salaries payable 2. Jan 15 Cash Rent earned