Terbish Company started operations on January 1, 2014. It is now December 31, 2014, the end of the fiscal year. The part- time bookkeeper needs your help to analyze the following three transactions:

a. During 2014, the company purchased office supplies that cost $ 1,600. At the end of 2014, office supplies of $ 400 remained on hand.

b. On January 1, 2014, the company purchased a special machine for cash at a cost of $ 12,000. The machine€™s cost is estimated to depreciate at $ 1,200 per year.

c. On July 1, 2014, the company paid cash of $ 600 for a one- year premium on an insurance policy on the machine; coverage begins on July 1, 2014.

Required:

Complete the following schedule of the amounts that should be reported for 2014:

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Selected Statement of Financial Position Amounts at December 31,2014 Assets Amount to Be Reported Equipment Accumulated depreciation Carrying amount of equipment Office supplies inventory Prepaid insurance Selected Statement of Earnings Amounts for the Year Ended December 31, 2014 Expenses Depreciation expense Office supplies expense Insurance expense