Presented below is the trial balance for ABC, Inc. as of December 31, 2008, befo
ID: 2392822 • Letter: P
Question
Presented below is the trial balance for ABC, Inc. as of December 31, 2008, before adjusting entries:
ABC , INC.
Trial Balance
December 31, 2008
DR
CR
Cash
$28,400
Accounts Receivable
12,500
Prepaid Insurance
7,200
Equipment
25,000
Accumulated Depreciation – Equipment
$ 800
Unearned Revenue
6,000
Notes Payable
7,950
Retained Earnings
5,000
Common Stock
29,000
Fee Revenue
39,000
Salaries Expense
13,200
Supplies Expense
950
Interest Expense
500
$ 87,750
$ 87,750
29. At December 31, there were $400 of supplies on hand. The adjusting entry on December 31, 2008 is a:
a. debit to Supplies and a credit to Cash
b. debit to Supplies and a credit to Supplies Expense
c. debit to Supplies Expense and a credit to Cash
d. debit to Supplies Expense and a credit to Supplies
e. None of the above
30. Refer to the previous question. The amount of the entry is:
DR
CR
Cash
$28,400
Accounts Receivable
12,500
Prepaid Insurance
7,200
Equipment
25,000
Accumulated Depreciation – Equipment
$ 800
Unearned Revenue
6,000
Notes Payable
7,950
Retained Earnings
5,000
Common Stock
29,000
Fee Revenue
39,000
Salaries Expense
13,200
Supplies Expense
950
Interest Expense
500
$ 87,750
$ 87,750
Explanation / Answer
29). The adjusting entry for the supplies:-
Hence the answer is d.) debit to supplies expense and a credit to supplies.
30). Amount of adjusting entry is $950.
Account Titles Debit Credit Supplies Expense $950 Supplies $950