On July 1, 2017, Lopez Company paid $2,600 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31, 2017. Zim Company has a Supplies account balance of $7,800 on January 1, 2017. During 2017, it purchased $3,400 of supplies. As of December 31, 2017, a supplies inventory shows $1,500 of supplies available. Required:
Prepare the journal entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.

a.

Date                          Account Title                                       Debit           Credit

Dec. 31, 2017           Insurance expense                          $2,600

                                 Prepaid insurance                                                 $2,600

b.

Date                          Account Title                                       Debit           Credit

Dec. 31, 2017           Supplies Expense                               $9,700

                                  Supplies                                                                 $9,700

Working

Supplies = Beginning balance + Purchases - Closing balance

= 7,800 + 3,400 - 1,500

= $9,700

answer; i believe that the correct answer is ( owners investment)

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hope this