Question 15 Gordon Company started operation on January 1 of the current year, It is now December 31, the end of the current annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions. a. During the year, the company purchase office supplies that cost $3,000. AT the end of the year, office supplies if $800 remained on hand. b. On January 1 of the current year the company purchase a special machine for cash at a cost of $25,000. The machines cost is estimated to depreciate at $2,500 per year. c. On July 1, the company paid cash of $1,000 for a two-year premium on an insurance policy on the machine; coverage began on July 1 of the current year. Required: Complete the following schedule with the amounts that should be reported for a current year:

Selected Balance Sheet Accounts at December 31 Amount to be Reported

Assets

Equipment

Accumulated depreciation

Net book value of equipment

Office supplies