Question

Arnez Company’s annual accounting period ends on December 31, 2019. The following information concerns the adjusting entries to be recorded as of that date.

1. The Office Supplies account started the year with a $4,100 balance. During 2019, the company purchased supplies for $16,933, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2019, totaled $3,608.

2. An analysis of the company's insurance policies provided the following facts.
    

Policy	Date of Purchase	Months of Coverage	Cost
A	April 1, 2017	24	$	11,832
B	April 1, 2018	36		10,584
C	August 1, 2019	12		9,432

  

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 $2,350 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, 2019, 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, 2020.

4. The company purchased a building on January 1, 2019. It cost $980,000 and is expected to have a $45,000 salvage value at the end of its predicted 25-year life. Annual depreciation is $37,400.

5. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $3,200 per month, starting on November 1, 2019. 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 $2,899 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. Assume no other adjusting entries are made during the year.

 
Required:
1. Use the information to prepare adjusting entries as of December 31, 2019.
2. Prepare journal entries to record the first subsequent cash transaction in 2020 for parts c and e.

As you can see I have gotten most of the problem I cannot seem to figure out how to get 2b. Insurance expense and Prepaid expense and I have having issues on the 2nd chart below getting salaries expense and salaries payable.

 

No	Transaction	General Journal	Debit	Credit
1	a.	Office supplies expense	17,425
		Office supplies		17,425
2	b.	Insurance expense
		Prepaid insurance
3	c.	Salaries expense	4,700
		Salaries payable		4,700
4	d.	Depreciation expense—Building	37,400
		Accumulated depreciation—Building		37,400
5	e.	Rent receivable	3,200
		Rent earned		3,200
6	f.	Unearned rent	5,798
		Rent earned		5,798

 

No	Date	General Journal	Debit	Credit
1	Jan 06	Salaries expense
		Salaries payable