The blumer company entered into the following transactions during 2012: 1. the company was started with $22,000 of common stock issued to investors for cash. 2. on july 1, the company purchased land that cost $15,500 cash. 3. there were $700 of supplies purchased on account. 4. sales on account amounted to $9,500. 5. cash collections of receivables were $5,500. 6. on october 1, 2012, the company paid $3,600 in advance for a 12-month insurance policy that became effective on october 1. 7. supplies on hand as of december 31, 2010 amounted to $225. the adjusting entry necessary to record the supplies expense would result in a: $700 increase in assets and liabilities. $700 decrease in assets and equity. $475 decrease in assets and equity. $475 increase in assets and liabilities. the amount of insurance expense reported on the income statement for 2012 would be: $900. $2,400. $300. $600. the amount of cash flow from operating activities would be: $1,900. $8,400. $3,100. $5,400. the amount of total liabilities appearing on the december 31, 2012 balance sheet would be: $3,600. $4,000. $475. $700.