Arnez Companys annual accounting period ends on December 31, 2018. The following information concerns the adjusting entries to be recorded as of that date.

1. The Office Supplies account started the year with a $4,050 balance. During 2018, the company purchased supplies for $16,727, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2018, totaled $3,564.
2. An analysis of the company's insurance policies provided the following facts.

Policy	Date of Purchase	Months of Coverage	Cost
A	April 1, 2016	24	$	15,840
B	April 1, 2017	36		14,616
C	August 1, 2018	12		13,440

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.)

3. The company has 15 employees, who earn a total of $1,700 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 Years Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2019.
4. The company purchased a building on January 1, 2018. It cost $900,000 and is expected to have a $45,000 salvage value at the end of its predicted 35-year life. Annual depreciation is $24,429.
5. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,700 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.
6. On November 1, the company rented space to another tenant for $2,446 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 c and e.

A B , 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 $4.050 balance. During 2018, the company purchased supplies for $16.727. which was added to the Office Supplies account. The inventory of supplies available at December 31, 2018, totaled $3.564. b. An analysis of the company's insurance policies provided the following facts. Months of Policy Date of Purchase Coverage Cost April 1, 2016 $15,840 April 1, 2017 36 14,616 August 1, 2018 12 13,440 The total premium for each policy was paid in full for all months) at the purchase dete, 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 $1,700 in salaries each working day. They are paid esch 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 the 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 $900.000 and is expected to have a $45,000 salvage value at the end of its predicted 35-year life. Annual depreciation is $24.429. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,700 per month, starting on November 1, 2018. The rent was paid on time on November 1, and the amount received was created to the Rent Esmed account However, the tenant has not paid the December rent. The company has worked out on 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 tenent for $2.446 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Uneamed Rent account. Required: 1. Use the information to prepare adjusting entries as of December 31, 2018 2. Prepere journal entries to record the first subsequent cash transaction in 2019 for parts cande. View transaction llat Journal entry worksheet Journal entry worksheet 2 3 4 5 6 Credit Record entry Clear entry View general Journal Record entry Clear entry View general Journal Journal entry worksheet Record the payment of accrued and current salaries. Note: Enter debts before credits Racord entry Clear entry Mew general Journal Date General Journal Debit Credit Jan od Journal entry worksheet 1 2 Record the receipt of two months rent Record entry Clear entry View general Journal Note: Enter debts before credits View transaction like Date General Journal Debit Credit Jan 15 Journal entry worksheet 4 6 6 Record entry Since the company is not large enough to occupy the entire building it owns, il rented space to a tenant at $2,700 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 Eamed 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. Clear entry View general Journal Note: Enter debts before credits Transaction General Journal Debit Credit Record entry Clear entry View gener journal Journal entry worksheet 5 8 On November 1, the company rented space to another tenant for $2,446 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Uneamed Rent account. Note: Enter debts before credits Transaction General Journal Debit Credit Record by Clear entry View general journal