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Fes Company is making adjusting journal entries for the year ended December $31,2024.$ In developing information for the adjusting

journal entries, you learned the following:

a$.$ A two$-$year insurance premium of $$7,200$ was pald on January $1,2024,$ for coverage beginning on that date. As of December $31,$

$2024,$ the unadjusted balances were $$7,200$ for Prepaid Insurance and $$0$ for Insurance Expense.

b$.$ At December $31,2024,$ you obtalned the following data relating to supplies.

Unadjusted balance in Supplies on December $31$

Unadjusted balance in Supplies Expense on December $31$

Supplies on hand, counted on December $31$

$$15,000$

$72,000$

$10,000$

Required:

Of the $$7,200$ pald for insurance, what amount should be reported on the $2024$ income statement as Insurance Expense? What

amount should be reported on the December $31,2024,$ balance sheet as Prepald Insurance?

What amount should be reported on the $2024$ income statement as Supplies Expense? What amount should be reported on the

December $31,2024,$ balance sheet as Supplies?

Indicate the accounting equation effects of the adjustment required for

a$.$ Insurance and

b$.$ supplies.

If a transaction affects a temporary account, Include the account name under "Temporary Accounts" and the financlal effect under

$"$NI$."$ Do not enter an amount under "Stockholders' Equity" for these transactions; their impact on stockholders' equity will occur later

when the temporary accounts are closed at year$-$end. Do not enter No Effect $($NE$)$ or zero for any cells without an effect for each

transaction despite what may be shown in textbook demonstration cases as these cells should be left blank.

Complete this question by entering your answers in the tabs below.

Indicate the accounting equation effects of the adjustment required for

$($a$)$ insurance and

$($b$)$ supplies.

textbook demonstration cases as these cells should be left blank.

Note: Enter any decreases to Assets, Liabilities, Stockholders' Equity, or Net Income with a minus sign.

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