Q1: Prepare adjusting entries for the Period ended December 31,2020 of AB company. (5x3=15) a) The Office supplies account started the year with a $3,000 balance. During 2020 the company purchased supplies for $12,400, which was added to the Office supplies account. The inventory of supplies available at December 31, 2020, totaled $2,640. b) The company has 15 employees, who earn a total of $2,100 in salaries each working day. They are paid each Monday for their work in the five-day work week ending on the previous Friday. Assume that December 31,2020 is a Tuesday and all 15 employees worked the first two days of that week. c) The Company purchased a building on January 1, 2020. It costs $8,55,000 and is expected to have a $45,000 salvage value at the end of its predicted 30 years life. d) Since the company is not large enough to occupy the entire building, it owns, it rented space to a tenant at $2,400 per month, starting on November 1, 2020. 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. e) On November 1, the company rented space to another tenant for $2,175 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.