Use the following to answer the five questions below: Cross' Consulting entered into the following transactions during 2016, its first year of operations: (Assume a fiscal year from Jan. 1 - Dec. 31.) 1. The company was started with $20,000 of common stock issued to investors for cash. 2. The company purchased equipment on July 1 that cost $22,000 cash. The equipment had a five-year useful life and a $7,000 estimated salvage value. 3. $850 of office supplies were purchased on account. 4. Sales on account amounted to $21,000. 5. Cash collections of receivables amounted to $12,500. 6. On October 1, the company paid $2,400 in advance for a 12-month insurance policy that covers the period from October 1, 2016 until September 30, 2017 7. Office supplies on hand as of December 31, 2016 amounted to $250. The amount of depreciation expense appearing on the December 31, 2016 income statement would be: 1. 2. What effect would the adjusting entry to record the supplies expense have on the following: (Suggestion: First, write the J to record the supplies used during the year. Then, use the entry to fill in the blanks. Make T-Accounts for "Supplies (Asset Acct) and Supplies Expense" if it will help.) (increase/decreaseo effect) (dollar amount) Assets Liabilities Equity 3. The amount of insurance expense reported on the income statement for 2016 would be: 4. The amount of total liabilities appearing on the December 31, 2016 balance sheet would be: 5. Net Income for the year 2016 would be: (Put down what you know about the income Statement and work from there