Iowa Company started operations on January 1 . 2004. It is now December 3 1 . 2004. the end of the annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions:

a. On January 1. 2004. the company purchased a special machine for a cash cost of $12,000. The machine's cost is estimated to depreciate at $1,200 per year.

b. During 2004. the company purchased office supplies that cost SI.400. At the end of 2004. office supplies of S400 remained on hand.

c. On July 1 . 2004. the company paid cash of S400 for a two-year premium on an insurance policy on the machine that begins coverage on July 1. 2004.

Required:

Complete the following schedule of the amounts that should be reported for 2004:

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Selected Balance Sheet Amounts at December 31, 2004 Assets Equipment Accumulated depreciation Carrying value of equipment Office supplies Prepaid insurance Selected Income Statement Amounts for the Year Ended December 31, 2004 Expenses Depreciation expense Office supplies expense Insurance expense Amount to Be Reported $_