on January1, the balance in supplies was $800. During the period,purchases of supplies were $950. Defective supplies costing $100 were returned. on December 31, physical count revealed that supplies on hand were $380. How did it get to that balance? do the adjusting entry. On August 1, the company paid $6000 for one year insurance policy beginning that day. Record the adjusting journal entry, calculate amount used from August 1 trough December 31. On May 1, the company purchase equipment costing $20000, the equipment was estimated to have a useful life of five years and a trade in value of $2000. The company uses straight line depreciation. Record the journal entry for depreciation expense from 5/1 through 12/31. calculate the annual depreciation based on the formula and then divide. Use the correct accounts for depreciation when you record the adjusting journal entry. The weekly payroll of $8000 will be paid on Friday, January 2. Each day's salary is the same during the five-day work week. calculate the accrue salary up to 12/31. Do the adjusting entry.