13. Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $2,400 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be A) Debit Supplies Expense, $2,400; Credit Supplies, $2,400. B) Debit Supplies, $4,600; Credit Supplies Expense, $4,600. C) Debit Supplies Expense, $4,600; Credit Supplies, $4,600. D) Debit Supplies, $2,400; Credit Supplies Expense, $2,400. 14. Depreciation expense for a period is computed by taking the A) original cost of an asset - accumulated depreciation. B) depreciable cost of the asset + depreciation rate. C) cost of the asset + useful life. D) market value of the asset + useful life. 15. On January 1, 2012, Superfuzz Company purchased equipment for $30,000. The company is depreciating the equipment at the rate of $600 per month. The book value of the equipment at December 31, 2012 is A) $0. B) $7.200. C) $22,800. D) $30,000. 16. Closing entries are made A) in order to terminate the business as an operating entity. B) so that all assets, liabilities, and owner's capital accounts will have zero balances when the next accounting period starts. C) in order to transfer net income (or loss) and owner's drawings to the owner's capital account. D) so that financial statements can be prepared. 17. If a company determines cost of goods sold each time a sale occurs, it A) must have a computer accounting system. B) uses a combination of the perpetual and periodic inventory systems. C) uses a periodic inventory system. D) uses a perpetual inventory system