1. On December 31, 2020, the Supplies account showed a current balance of $2,520. During 2021, purchases of supplies amount to $7,200. An inventory of supplies on December 31, 2021, showed a current balance of $3,600. Prepare the adjusting entry required on December 31, 2021, under each of the following separate cases.

1. On December 31, 2020, the Supplies account showed a current balance of $2,520. During 2021, purchases of supplies amount to $7,200. An inventory of supplies on December 31, 2021, showed a current balance of $3,600. Prepare the adjusting entry required on December 31, 2021, under each of the following separate cases. a. Case A-purchases of supplies were debited to Supplies. What is the balance of the Supplies account on December 31, 2021? General Journal Ref. Account Name Dr. Cr. Case A Supplies 7,200 x Cash 0 7,200 x 0 Case A: Balance of Supplies at year-end: $ 9,720 x b. Case B-purchases of supplies were debited to Supplies Expense. What is the balance of the Supplies account on December 31, 2021? Cr. General Journal Ref. Account Name Case B Supplies Expense * Cash Dr. 7,200 x o 0 7.200 x Case B: Balance of Supplies at year-end: $ 2,520 x 2. On December 31, 2020, the Prepaid Insurance account showed a debit balance of $6,480, which was for coverage for the three months, January through March of 2021. On April 1, 2021, the company purchased another policy covering a two-year period starting from that date. The two-year premium of $69,120 was paid and debited to Prepaid Insurance. Prepare the adjusting entry required on December 31, 2021, to account for insurance expense for the entire year. What is the balance in the Prepaid Insurance account on December 31, 2021? General Journal Ref. Account Name Dr. Insurance Expense 8,640 x 0 Prepaid Insurance 8,640 x Balance of Prepaid Insurance at year-end: $ 51,840 x