Net income (loss) on the income statement beginning balance in the Cash account Avalon Event Planning Services Inc. records prepaid expenses and unearned revenues using the alternative treatments. It makes adjusting entries as needed to bring its books to the full accrual basis once a year at the end of the year. On October 1. it paid $3, 600 for insurance for a one-year period. At the end of the year, it will make an adjusting entry that debits Insurance Expense for $900. True False The accountant of Zeus Legal Services failed to make an adjusting entry for supplies that had been used for the year. Assume the supplies were initially recorded as an asset. Which of the following statements is true? The total liabilities will be overstated. The equity will be understated. The total assets will be overstated. The total assets will be understated. Which of the following is a contra account? Depreciation Expense Accumulated Depreciation Unearned Revenue Earned Revenue on January 1, Ogden Inc. had $2,000 of supplies on hand. During January. Ogden purchased $4,000 worth of new supplies. At the end of the month, a count revealed $1,000 worth of supplies remaining on the shelves. The adjustment entry needed will include a debit to Supplies Expense of $5,000. The supplies were initially recorded as an asset. True False