6) Cal Farms reported supplies expense of $2,200,000 this year. The supplies account decreased by $270,000 during the year to an ending balance of $380,000. What was the cost of supplies the Cal Farms purchased during the year? A) $2,580,000. B) $1,820,000. C) $2,470,000. D) $1,930,000. 7) Eve's Apples opened its business on January 1, 2021, and paid for two insurance policies effective that date. The policy for equipment damage was $35,280 for 18 months, and the crop damage policy was $14,700 for a two-year term. What is the balance in Eve's prepaid insurance as of December 31, 2021? A) $45,570. B) $19,110. C) $15,435. 8) D) $49,980. Which of the following is a primary reason a company's book value is less than its market value? A) Management recording errors. B) Many valuable resources of the company are not recorded as assets. C) Land and buildings are reported at their fair value on the financials. D) Investors tend to be too optimistic about a company's growth opportunities. D 9) If a company records cash received for services to be provided in the future with a debit to Cash and a credit to Service Revenue, how will this error affect net income for the current period? A) Net income will be too low. B) Net income will be correct. C) Net income will be too high. D) Not possible to determine.