20. The balance in the Office Supplies account on July 1 was $4,000, supplies purchased and properly recorded during month were $2,500. What is the amount of the adjusting journal entry if the supplies on hand at July 31 are $2,800. a. $1,500 b. $2,800 c. $4,000 d. $3,700 21. What Prepaid Insurance account balance before adjustment of $15,000 and an analysis of insurance policies arrived at the unexpired insurance amount of $3,500. is the proper adjusting entry on December 31, the end of the fiscal year, based on a a. debit Insurance Expense $3,500 credit Prepaid Insurance $3,500 b. debit Insurance Expense $11,500 credit Prepaid Insurance $11,500 c. debit Prepaid Insurance $3,500 credit Insurance Expense $3,500 d. debit Prepaid Insurance $15,000 credit Insurance Expense $15.000 22. estima What is the amount of the first year's depreciation expense using the straight-line method? Company purchased a delivery van for $40,000 on the first day of the year. The dual value for the van is $8,000 and has an estimated useful life of 8 years. a. $4,500 b. $5,000 c. $6,000 d. $4,000 23 What adjusting entry is required at the end of December 31, 2017? ompany prepaid an annual insurance policy on December 1,2017 for $2,400. a. debit Prepaid Insurance $2,400 credit Insurance Expense $2,400 b. debit Insurance expense $2,400 credit Prepaid Insurance $2,400 c. debit Insurance expense $1,200 credit Prepaid Insurance $1,200 d. debit Insurance expense $200 credit Prepaid Insurance $200 24. The worksheet is prepared to assist in a. preparation of financial statements. b. recording adjusting entries. c. recording closing entries. d. all of the above