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For each separate case, record the necessary adjusting entry. a. On July 1, Lopez Company paid $1,900 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $6,400 at the beginning of the year. During the year, it purchases $2,700 of supplies. As of December 31 , a physical count of supplies shows $1,150 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31