Use the following information for the next two questions about Sue Company. SUE CO. Balance Sheet December 31, 2011 Assets Liabilities Cash S 4,500 Accounts Payable $ 22,800 Prepaid Insurance 1,500 Accounts Receivable 16,000 Owners' Equity Building 18,000 Common Stock 22,200 Equipment 11.000 Retained Eamings 6,000 Total Assets S 51.000 Total Liab & Owners' Equity S51.000 If an adjusting entry was made on December 31, 2011 to recognize $800 of the Prepaid Insurance as expired (used up), then after the adjusting entry is recorded and posted to the accounts, the balance sheet would balance at: $50,200 $49.500 $50,300. $50,000 None of the above. According to Sue's balance sheet shown in the exhibit at the start of this problem: The assets are all reported at fair market value in the balance sheet. Current liabilities are more than current assets. Property, plant and equipment assets total $46,500. Total owner's equity of Sue Company is equal to $22,200. None of the above are correct. The purpose of adjusting entries is to: Update the balance in the Cash account. Close all temporary accounts. Update the balance in Common Stock Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions None of the above. April Company made several purchases of office supplies totaling $3.310 during its first year of operations and recorded all purchases by debiting Office Supplies Expense. At December 31, the amount of used suppies on and widelcamined by count to amount to $1.460. The proper adjusting entry would Debit Office Supplies 51.460 and credit Office Supplies Expense 51,460 Debit Office Supplies Expense S1,850, and credit Office Supplies 51,850 Debit Office Supplies Expense $1,460 and credit Office Supplies S1,460. Debit Accounts Payable $3,310 and credit Office Supplies $3,310. None of the above. D. The CPA firm auditine Isintz Comany found that not incoma hudba