Question

027 29 If supplies was 103900 at the beginning of the year: 30,000 in supplies were purchased throughout the year and supplies on hand is 25000 at 12/31/xx. What is the dollar amount of the adjusting entry? e none of the above are correct 108900 25000 P8 230 If the company earried 65000 for the year and the cash collected on 1/1 was 300,000. What account is credited on 12/31 and for how much? deferred revenue 65000 none of the above sales income 65000 sales income 235000 09 29 the post closing balance sheet shows which type of accounts

Answer 1

7.

Supplies in the beginning = 103900

Supplies purchased = 30,000

Supplies at the end = 25,000

Supplies expense = Supplies in the beginning + Supplies purchased - Supplies at the end

= 103,900 + 30,000 - 25,000

= 108,900

Dollar amount of the adjusting entry is 108,900

Second option is the correct option.

8.

Amount earned for the year = 65,000

Cash received on 1/1 = 300,000

When cash had been received, unearned revenue would have been credited by 300,000. Now, for amount earned, sales income will be credited by 65,000 and unearned revenue will be debited by 65,000

Third option is the correct option.

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