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Benson Company adjusts it account at the end of each year. The following information concerns the adjusting entries to be recorded as of December 31

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Benson Company adjusts it account at the end of each year. The following information concerns the adjusting entries to be recorded as of December 31 : i. The Office Supplies account started the year with a $6,000 debit balance. During the year, the company purchased supplies for $13,400, which was added to the Office Supplies account. A December 31 physical count shows $2,554 of supplies remaining. ii. The company purchased a building two years ago for $960,000. The building's estimated useful life at the time of the purchase was 30 years. iii. The Prepaid Insurance account had a $20,000 debit balance at December 31 before adjusting for the costs of any expired coverage for the year. An analysis of prepaid insurance shows that $12,680 of unexpired insurance coverage remains at year-end. iv. Since the company is not large enough to occupy the entire building it owns, on November 1 , the company rented space to a tenant for $3,800 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Revenue account. Assume no other adjusting entries are made during the year. v. The company has 15 employees, who earn a total of $1,960 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 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 of next year. Required: (a) Use the information to prepare adjusting entries as of December 31 . (Explanation of Journal Entry is not required) (20 marks) (b) Assume the profit after the adjusting entries on (a) was $84,514. Determine the profit of Benson Company BEFORE these adjustments on (a). Show workings. ( 8 marks) (c) Prepare journal entries to record the first subsequent cash transaction in January of the next year for parts (v). (Explanation of Journal Entry is not required) (9 marks)

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