Answer:
purchase of supplies 5,600
insurance expense 2,300 debit
prepaid insurance 2,300 credit
Explanation:
(1) What was the cost of supplies purchased during December?
invneotry identity:
beginning supplies + purchase = ending supplies + expense
the left side are the input. The supplies could come from previous prior or be pruchase.
The right side the outputit could be consumer or kept at stock
3,100 + p = 4,600 + 3,600
purchase = 4,600 + 3,600 - 3,100 = 5,100
(2) What was the adjusting entry recorded at the end of December for prepaid insurance?
beginning insurance 7,600
ending insurance (5,300)
adjustment: 2,300
there was insurance expired for the value of 2,300
