a. On July 1, 2017, Lopez Company paid $1,200 for six months of insurance coverage. No adjustments Qs 3-7 have been made to the Prepaid Insurance account, and it is now December 31, 2017. Prepare the jour- Adjusting prepaid nal entry to reflect expiration of the insurance as of December 31, 2017. expenses b. Zim Company has a Supplies account balance of $5,000 on January 1, 2017. During 2017, it pur- P1 chased $2,000 of supplies. As of December 31, 2017, a supplies inventory shows $800 of supplies available. Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017