A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1242 of supplies on hand. The general ledger balance before any adjustment is $2020. What is the adjusting entry for office supplies that should be recorded on May 31?

A. Debit Supplies $1242 and credit Cash $1242.
B. Debit Supplies Expense $2020 and credit Supplies $2020.
C. Debit Prepaid Supplies $778 and credit Supplies Expense $778.
D. Debit Supplies Expense $778 and credit Supplies $778.
E. Debit Supplies Expense $1242 and credit Supplies $1242.


Answer: D

Business

You might also like to view...

Under the payoff method of handling a bank failure, the FDIC

A. takes over the bank and controls its operations. B. closes the bank, sells off the assets, pays off insured depositors, and then pays off creditors of the bank if funds remain. C. keeps the bank open and lends funds to it so that it is able to continue its operation. D. finds a buyer for the bank, giving the buyer the good assets of the bank, and assumes the bad loans of the bank.

Business

In an actual cost system, actual production overhead costs are typically accumulated in an Overhead Control account and assigned to Work in Process at the end of the period

Indicate whether the statement is true or false

Business

Performance risk stems from the ______.

A. fluctuations in demand and inventory levels B. choice of company’s sourcing strategy C. ongoing quality and financial issues with the supplier D. supplier’s inability to meet delivery lead times

Business

On the statement of cash flows, cash sale of property, plant and equipment used for the last 5 years in the company's operations is treated as an operating activity

Indicate whether the statement is true or false

Business