A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?
A) Debit Supplies Expense $1,250 and credit Supplies $1,250.
B) Debit Prepaid Supplies $850 and credit Supplies Expense $850.
C) Debit Supplies Expense $1,250 and credit Supplies $2,100.
D) Debit Supplies $1,250 and credit Cash $1,250.
E) Debit Supplies Expense $850 and credit Supplies $850.
E) Debit Supplies Expense $850 and credit Supplies $850.
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The calendar year-end adjusted trial balance for Blessinger Co. follows: BLESSINGER CO.
Adjusted Trial Balance December 31 Cash$ 112,000?Accounts receivable27,000?Prepaid rent15,000?Prepaid Insurance9,000?Office supplies3,300?Office equipment38,000?Accumulated depreciation-Equipment?$3,200Building288,000?Accumulated depreciation-Building?42,000Land700,000?Accounts payable?25,800Salaries payable?14,500Interest payable?2,500Long-term note payable?72,000Common stock?200,000Retained earnings?710,000Dividends200,500?Service fees earned?430,800Salaries expense90,000?Insurance expense5,200?Rent expense5,000?Depreciation expense-Equipment800?Depreciation expense-Building7,000?Totals$1,500,800$1,500,800Required:(a) Determine the amounts of current assets and current liabilities. (Note: A $9,000 installment on the long-term note payable is due within one year.)(b) Calculate the current ratio. Comment on the ability of Blessinger Co. to meets its short-term debts. What will be an ideal response?
When using a cost-based approach, once the cost of a good or service has been determined, additional factors need not be considered in establishing a selling price
Indicate whether the statement is true or false
Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department?
A. Salary of the clock production supervisor B. Depreciation on clock-making equipment C. Depreciation on the factory building D. All of the answers are correct.
Employees of Mega Corp have gone out on strike seeking better pay. Mega Corp announces that if the union does not end the strike it will begin hiring replacement workers. Which statement is correct?
a. Hiring replacement workers during a strike is an unfair labor practice. b. Mega Corp can only hire replacement workers if the collective bargaining agreement expressly gives the company the right to do so. c. Mega Corp can only hire replacement workers if it gives the union 14 days' notice prior to actually bringing in the replacement employees. d. Mega Corp can hire replacement workers at any time during a strike.