3. The unadjusted balance of the Office Supplies account is $2,790 Office supplies on hand total $1,640. 4. Equipment depreciation was $210. 5. On October 1 , when the business prepaid $5,880 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. ournalize the adjusting entry needed on December 31 for each situation. 3. The unadjusted balance of the Office Supplies account is $2,790 Office supplies on hand total $1,640. 4. Equipment depreciation was $210. 5. On October 1 , when the business prepaid $5,880 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. ournalize the adjusting entry needed on December 31 for each situation