Knoll Company started Year 2 with a $500 in cash, $500 in supplies, and $1, 000 in common stock accounts. During Year 2 the company experienced the following events. Paid $400 cash to purchase supplies. Physical count revealed $100 of supplies on hand at the end of Year 2. Based on this information the amount of supplies expense reported on the Year 2 income statement is $900. $800 $400. $100. Delta Company started Year 2 with a $1700 in cash, $700 in supplies, and $2, 400 in common stock accounts. During Year 2 the company experienced the following events Paid $1, 600 cash to purchase supplies. Physical count revealed $400 of supplies on hand at the end of Year 2. Based on this information the year-end adjusting entry to recognize supplies expense would cause total assets to decrease by $400 total expenses to increase by $700. total stockholders' equity to decrease by $1, 900. cash flow from operating activities to decrease by $1, 100