Question

Help Save & Exit Sub Check my work mode: This shows what is correct or incorrect for the work you have completed so far, it does not indicate completion Return to queste Problem 3-2A Preparing adjusting and subsequent journal entries LO P1, P2, P3, P4 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. a. The Office Supplies account started the year with a $3,600 balance. During 2019, the company purchased supplies for $14,868, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2019, totaled $3.168 b. An analysis of the company's insurance policies provided the following facts Policy Months of Coverage cost Date of Purse April 1, 2017 April 1, 2018 August 1, 2019 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) c. The company has 15 employees, who earn a total of $1,850 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. d. The company purchased a building on January 1, 2019. It cost $665,000 and is expected to have a $45,000 salvage value at the end of its predicted 35 year life. Annual depreciation is $17,714. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,800 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. nn Manhat the manuten t e tanter m ath Thanthi mantent in na Prev Next >

i missed number two. does anyone know the answer

Answer 1

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Arnez Company
Calculation of expired insurance expense:
		A	B	C	D=B/A*C
Policy	Date of purchase	Months of coverage	Cost	Months used in 2019	Insurance Expense	Remarks
A	April 1 2017	24	10,032.00	3	1,254.00	Policy taken on April 1 2017. Months covered is 24. So in 2017 April to Dec i.e. 9 months used. Full 12 months used in 2018. Remaining 24-9-12= 3 months used in 2019.
B	April 1 2018	36	8,856.00	12	2,952.00	Policy taken on April 1 2018. Months covered is 36. So full 12 months used in 2019.
C	August 1 2019	12	7,632.00	5	3,180.00	Policy taken on August 1 2019. Months covered is 12. So in 2019 August to Dec i.e. 5 months used.
					$               7,386.00
Journal Entry
No.	Transaction	General Journal	Debit $	Credit $
2	b.	Insurance Expense	7,386.00
		Prepaid Insurance		7,386.00