Nomo Co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. The company's annual accounting period ends on October 31,2011 . The following information concerns the adjusting entries that need to be recorded as of that date. a. The Office Supplies account started the fiscal year with a $500 balance. During the fiscal year, the company purchased supplies for $3,650, which was added to the Office Supplies account. The supplies available at October 31,2011 , totaled $700. b. An analysis of the company's insurance policies provided the following facts. PROBLET Problem 3-1 Preparing adjus subsequent jou CI A1 P1 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 fiscal years.)