Question

Question 7 0.5 pts A corporation began the period with $3,500 of supplies on hand and recorded as assets. On the last day of the accounting period, there are $1,100 of unused office supplies on hand. What should the accountant do? O Debit Supplies and credit Supplies Expense for $1,100. Debit Supplies Expense for $1,100 and credit Supplies for $1,100. O Debit Supplies Expense for $2,400 and credit Supplies for $2,400. o Debit Supplies and credit Supplies Expense for $3,500. Nothing. No journal entry is required. Question 8 0.5 pts A company uses accrual-basis accounting. Shortly before the end of the current year, the company earned $1,000 by providing services to a customer but the customer does not pay the company until the following year. Nothing is recorded regarding these events, including year-end adjusting entries. This omission would cause the company's current year o stockholders' equity to be understated. O assets to be overstated. OOOOO O liabilities to be understated. O revenues to be overstated. O retained earnings to be overstated.

Answer 1

Question 7

Supplies used = $3,500 - $1,100

= $2,400

The answer is Debit supplies expense for $2,400 and credit supplies for $2,400

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Question 8

The answer is Stockholder's equity to be understated.