1.

During 2004, $100 of supplies were purchased and debited to an asset account, Supplies. If on December 31, 2004, supplies on hand were $10, the adjusting entry would contain:

		debit to Supplies Expense for $90.
		a credit to Supplies Expense for $90.
		a credit to Supplies Expense for $10.
		a debit to Supplies Expense for $10.
		none of the above.

2.

The accountant for the McCarthy Company forgot to make an adjusting entry to record depreciation for the current year. The effect of this error would be:

		An overstatement of net income and an understatement of assets.
		An overstatement of assets offset by an understatement of owners' equity.
		An overstatement of assets, net income, and owners' equity.
		An overstatement of assets and of net income and an understatement of owners' equity.

3.

On September 1, 2004, Merit Company paid the landlord $4,800 for one year's rent in advance. A temporary account was debited. The adjusting entry at December 31, 2004 would include a:

		debit to Prepaid Rent
		credit to Prepaid Rent
		debit to Rent Payable
		debit to Rent Expense
		none of the above

4.

Refer to the above question. The amount of the adjusting journal entry at December 31, 2004 would be:

		$ 4,800
		$ 3,200
		$ 400
		$ 1,600
		none of the above