Solve the following problems and record the answers in the Answers column. Circle over or under when applicable.

0... If the prepaid insurance account has a debit balance of $5,200 at the end of the year and the amount applicable to future periods is $2,800, the amount for the appropriate adjusting entry is ............................................

1... If the supplies account has a debit balance of $8,500 at the end of the year and the amount of supplies on hand is $3,000, the amount for the appropriate adjusting entry is .....................................................................

2... The amount reported as an asset at the end of the year, based on the data in Question 1, is..........................................................................................

3... If the prepaid rent account has a balance of $12,000, representing a payment of four months rent beginning on May 1, the rent expense for May is ...................................................................................................

4... The net income reported on the income statement is $20,000. However, adjusting entries have not been made at the end of the period for supplies expense of $4,000 and accrued wages of $2,000. Net income, as corrected, is ...................................................................

5-7... If the errors in Question 4 are not discovered and corrected, the effect on the balance sheet will be as follows:

5... Total assets will be misstated (overstated or understated) by ...................

6... Total liabilities will be misstated (overstated or understated) by ................

7... Stockholders equity will be misstated (overstated or understated) by ......

8... If the balance in the supplies account on January 1 is $5,000, supplies purchased during January were $8,000, and the supplies on hand at January 31 were $5,000, the amount of supplies expense that would appear on the income statement for January is .........................................

9-11... The adjusting entry at the end of the current year was not made to record $8,000 of supplies used. Indicate the effect of the omission (overstated, understated, or not affected) on each of the following:

9... Net income for the current year .................................................................

10... Total assets at the end of the current year ................................................

11... Total stockholders equity at the end of the current year ...........................