8. P Company is in its first year of operation and decided to prepare its financial statements annually. The following transactions have been taken place during the year. - Sole proprietor of P Company started the business by investing $16,640 cash. - Purchased supplies worth $4,660 during the year. Physical count at the end of first year reveals that only $740 worth of supplies is in hand. - Purchased equipment for $8,900 , which is expected to be used for 8 years and expected to have residual value of $1,700. (Assume that company uses straight line depreciation method). - It has collected $6,000 in advance from various customers for the services to be rendered throughout the year. By the end of the year, it has performed obligations worth $3,200. - Incurred and paid operating expenses of $3,810. Assume that company has journalized all the above transactions properly. If P Company prepares the adjusting entry at the end of the year, determine the amount by which the expense account will increase as a result of adjustment? (Round off the intermediate answer to 0 decimal place.