L05 Problem 4-1 Adjustments Kretz Corporation prepares monthly nancial statements and therefore adjusts its accounts at the end ofevery month. The following information is available for March 2010: a. Kretz Corporation takes out a 90day, 8%, $15,000 note on March 1, 2010, with interest and principal to be paid at maturity. b. The asset account Ofce Supplies on Hand has a balance of $1,280 on March 1, 2010. During March, Kretz adds $750 to the account for purchases during the period. A count of the supplies on hand at the end of March indicates a balance of $1,370. c. The company purchased ofce equipment last year for $62,600. The equipment has an estimated useful life of six years and an estimated salvage value of $5,000