1. Complete the Adjustments section of the work sheet using the following information:

a. On October 31, an inventory of the supplies showed that items costing $3,240 were on hand. Record adjustments for the supplies used in October.

b. On September 30, 2016, the company purchased a six-month insurance policy for $8,400. Record an adjustment for the expired insurance in October.

c. On October 1, the company signed a three-month advertising contract for $4,800 with a local TV station and paid the full amount in advance. Record an adjustment for the expired advertising in October.

d. On April 1, 2016, the company purchased equipment for $83,000. The equipment was estimated to have a useful life of five years and a salvage value of $12,500. Record an adjustment for depreciation on the equipment for October using the straight-line (SL) method.

e. Based on a physical count, ending merchandise inventory was determined to be $81,260.

RALBAANCE REDIT ecourts Receivable Merchandse Ihvertory 12,948.50 88936 00 5,150.00 8400.00 4800.00 83,000.00 Supplies Prepaid hsurance Prepaid Advertising Accumidated Depme.Eqimert 7,050.00 6970.00 Accounts Payable Salaries Payable 3,507 50 203 252 00 Sales Tax Payable TLashay,Capital T. Lashay Drawing Sales 7,20000 70,750 00 600.00 18 640 00 3710 Sales Retums arnd Alowarces Purchases Freigtn 430 00 Purchases Returns and Allowarces 46240 z Purchases Discourts Advertising Experse Jantrial Services Exper, Revt Experse Teleghone Experse USlities Expense 1,445 00 475 00 4,200.00 780 0 11200 292,42130 292421 30 : Adjustmerts Expired Advertsing Expene Salary Expense Net Income