The balance in the supplies account, before adjustmor supplies o Joumalize the adjasting entry required if the amount of supplies year is $830. EX 3-5 Effect of omitting adjusting entry At March 31, the end of the first month of operations, OBJ. 2,3 the usual adjusting entry trans. erring prepaid insurance expired to an expense accoun is omitted error, on (a) the income statement for March and arch 31? Also indicate whether the items in error will be be incorrectly stated, because of the (b) the balance sheet as of overstated or understated. ted EX 3-19 Determining fixed asset's book value OBJ.2 The balance depreciation-equipment account is $725,000. a. What is the book value of the equipment? in the equipment account is $1,375,000, and the balance in the accumulated b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $725,000? Explain. EX 3-20 Book value of fixed assets In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $16,259 million and Accumulated Depreciation of $8,629 million. OBJ. 2