DuPage Company started operations on January 1, 2010. It is now December 31, 2010, the end of the annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions:

a. On January 1, 2010, 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.

b. During 2010, the company purchased office supplies that cost $1,400. At the end of 2010, office supplies of $400 remained on hand.

c. On July 1, 2010, the company paid cash of $400 for a two-year premium on an insurance policy on the machine; coverage begins on July 1, 2010.

Required:

Complete the following schedule with the amounts that should be reported for 2010:

Selected Balance Sheet Amounts

at December 31, 2010 Amount to Be Reported

Assets

Equipment ............$___________

Accumulated depreciation ......____________

Carrying value of equipment .....____________

Office supplies ...........____________

Prepaid insurance ..........____________

Selected Income Statement Amounts

for the Year Ended December 31, 2010_____________________

Expenses

Depreciation expense ........$___________

Office supplies expense .......____________

Insurance expense ..........____________