QS 3-7 (Algo) Adjusting prepaid (deferred) expenses LO P1 For each separate case, record the necessary adjusting entry. a. On July 1, Lopez Company paid \$2,200 for six months of Insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $7,000 at the beginning of the year. During the year, it purchases $3,000 of supplies. As of December 31, a physical count of supplies shows $1,300 of supplies avaliable. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31. Journal entry worksheet 2 Record year-end adjusting entry to reflect explration of the insurance as of December 31 . Note: Enter debits before credits. Journal entry worksheet Record year-end adjusting entry to reflect expiration of the insurance as of December 31 . Note: Enter debits before credits