O 34% LO 4-1, 4-2 Fes Company is making ad qug information fo Determining Adjustments and Accounting Equation Effects any is making adjusting journal entries for the year ended December 31, 2015. In devel- formation for the adjusting journal entries, you learned the following: so-year insurance premium of 57 200 was paid on January 1, 2015, for coverage begin- og on that date. As of December 31, 2015, he usedjusted balances were 57.200 for Prepaid Insurance and SO for Insurance Expense, Al December 31, 2015. you obtained the following slating to supplies. 6:38 PM Unadjusted balance in Supplies on December 31, 2015 Unadjusted balance in Supplies Expense on December 31, 2015 Supplies on hand, counted on December 31, 2015 $15,000 72,000 10,000 Required: 1. Or the $7,200 paid for insurance, what amount should be reported on the 2015 income state- ment as Insurance Expense? What amount should be reported on the December 31, 2015, balance sheet as Prepaid Insurance? What amount should be reported on the 2015 income statement as Supplies Expense? What amount should be reported on the December 31, 2015, balance sheet as Supplies? Using the format shown in the demonstration case, indicate the accounting equation effects of the adjustment required for (a) insurance and (b) supplies. . AT&T Recorum LO 4-1, 4-2 Determining Adjustments and Accounting Equation Effects Company is making adjusting journal entries for the vear ended December 31, 2015. In devel- information for the adjusting journal entries, you learned the following: A two-year insurance premium of $7200 was paid on January 1, 2015, for coverage begin ning on that date. As of December 31, 2015, the unidiusted balances were $7.2390 for Prepaid Insurance and SO for Insurance Expense. h At December 31, 2015, you obtained the following latus to supplies Unadjusted balance in Supplies on December 31, 2015 Unadjusted balance in Supplies Expense on December 31, 2015 Supplies on hand, counted on December 31, 2015 $15,000 72,000 10,000 Required: 1. Of the $7,200 paid for insurance, what amount should be reported on the 2015 income state- ment as Insurance Expense? What amount should be reported on the December 31, 2015, balance sheet as Prepaid Insurance? 2. What amount should be reported on the 2015 income statement as Supplies Expense? What amount should be reported on the December 31, 2015, balance sheet as Supplies? 3. Using the format shown in the demonstration case, indicate the accounting equation effects of the adjustment required for (a) insurance and (b) supplies