Natsu Company’s annual accounting period ends on October 31. The following information concerns the adjusting entries that need to be recorded as of that date. Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Building; Accumulated Depreciation— Building; Salaries Payable; Unearned Revenue; Rent Revenue; Salaries Expense; Office Supplies Expense; Insurance Expense; and Depreciation Expense—Building.
a. The Office Supplies account started the fiscal year with a $600 balance. During the fiscal year, the company purchased supplies for $4,570, which was added to the Office Supplies account. The supplies available at October 31 totaled $800.
b. The Prepaid Insurance account had a $12,000 debit balance at October 31 before adjusting for the costs of any expired coverage for the fiscal year. An analysis of prepaid insurance shows that $7,270 of unexpired insurance coverage remains at October 31.
c. The company has four employees, who earn a total of $1,000 for each workday. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that October 31 is a Monday, and all four employees worked the first day of that week. They will be paid salaries for five full days on Monday, November 7 of the next fiscal year.
d. The company purchased a building at the beginning of this fiscal year that cost $175,000 and is expected to have a $40,000 salvage value at the end of its predicted 25-year life. Annual depreciation is $5,400.
e. Because the company does not occupy the entire building it owns, it rented space to a tenant at $1,000 per month, starting on September 1. The rent was paid on time on September 1, and the amount received was credited to the Rent Revenue account. However, the October rent has not been paid. The company has worked out an agreement with the tenant, who has promised to pay both October and November rent in full on November 15.
f. On September 1, the company rented space to another tenant for $725 per month. The tenant paid five months’ rent in advance on that date. The payment was recorded with a credit to Unearned Revenue.

Required
1. Use the information to prepare adjusting entries as of October 31.
2. Prepare journal entries to record the first subsequent cash transaction in November for parts c and e.