For each separate case, record the necessary adjusting entry.
a. On July 1, Lopez Company paid $2,900 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31.
b. Zim Company has a Supplies account balance of $8,400 at the beginning of the year. During the year, it purchases $3,700 of supplies. As of December 31, a physical count of supplies shows $1,650 of supplies available.
