on You are preparing the annual adjusting entries for a business based on the following transactions. The business year end is December 31. 1. A December 31 physical count indicated that $2,300 of supplies remained on hand. Supplies had a balance of $9,900 in the unadjusted trial balance. 2. Equipment was purchased at the cost of $89,000 on February 28 of this year. The equipment is expected to have a useful life of 6 years, a residual value of $5,000 and the straight-line method is used. 3. The business borrowed $44,000 from a bank on February 1 of this year. The owner signed a 9%, 13-month note with accrued interest and loan principal payable on maturity. The note will be paid on March 1 of next year. 4. Employees earn a combined salary of $3,500 per seven-day work week. They were last paid on Friday, December 25 (Saturday to Friday pay period) and will be paid in two weeks. Instructions: Write you answers by hand, scan your working papers and upload to the link on the Moodle website as a PDF file after you finish the examination. Show any calculations. Printing the problem information is permitted but only for personal use during the examination. a) Prepare year-end adjusting entries based on information provided. 1. When the adjusting entry is prepared for supplies, how much expense is recognized? (whole number without comma, e.g. 10000): 2. When the adjusting entry is prepared for equipment, how much expense is recognized? (whole number without comma, e.g. 10000):