Check my work Problem 3-2A Preparing adjusting and subsequent journal entries LO A1, P1 Arnez Company's annual accounting period ends on December 31,2017. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $4,000 balance. During 2017, the company purchased supplies for $13,400 which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $2,554. b. An analysis of the company's insurance policies provided the following facts. Months of Policy Date of Purchase Coverage Cost April 1, 2015 April 1, 2016 August 1, 2017 24 36 12 $14,400 12,960 2,400 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) in the five-day workweek ending on the previous Friday. Assume that December 31, 2017, 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 c. 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 Monday, January 6, 2018. end of its predicted 30-year life. Annual depreciation is $30,500. startina on November 1, 2017. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned d. The company purchased a building on January 1, 2017. It cost $960,000 and is expected to have a $45,000 salvage value at the e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $3,000 per month