Answer:
Fes Company
1. Amount to report on the 2018 income statement as Insurance Expense 
= $3,400
b. Amount to report on the December 31, 2018 balance sheet as Prepaid Insurance 
= $3,400
2. Amount to report on the income statement as Supplies Expense 
= $72,600
b. Amount to report on the balance sheet as Supplies = $8,400
3. The accounting equation effects of the adjustment for:
a) Insurance
Assets (Prepaid Insurance -$3,400) = Liabilities + Equity (Retained Earnings -$3,400 as Insurance Expense)
b) Supplies
Assets (Supplies - $4,600) = Liabilities + Equity (Retained Earnings -$4,600 in addition to Supplies Expense)
Explanation:
Adjusting Journal Entries:
a. 
Debit Insurance Expense $3,400
Credit Prepaid Insurance $3,400
To adjust for expense for the year.
b. 
Debit Supplies Expense $4,600
Credit Supplies $4,600
To adjust for used supplies.
Workings:
Supplies 
Dec. 31, 2018 Balance   $13,000
Supplies on hand              8,400
Supplies used                 $4,600
Dec. 31 Supplies Expense Balance   $68,000
Supplies used                                       $4,600
Total supplies expense = $72,600