P3-4A A review of the ledger of Carmel Company at December following data pertaining to the preparation of annual adjusting entries. 31, 2015, produces the 890 1. Prepaid Insurance $10,440. The company has separate insurance policies on its build. ings and its motor vehicles. Policy B4564 on the building was purchased on April 1, 2014, for $7,920. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2015, for $4,500. This policy has a term of 2 years. 2. Unearned Rent Revenue $429,000. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.