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3 Q3. On April 1, Guerrero Rocher Company had $4,600 of supplies on hand. During April, Guerrero purchased $3,200 worth of new supplies. At the
3 Q3. On April 1, Guerrero Rocher Company had $4,600 of supplies on hand. During April, Guerrero purchased $3,200 worth of new supplies. At the end of the month, a count revealed $1,490 worth of supplies remaining on the shelves. The April 30 adjusting journal entry includes: Debit to Supplies $1,490 Credit to Supplies $6,310 Debit to Supplies expense $1,490 Credit to Supplies expense $6,310 QUESTION 4 Q4. On May 4, Ferrero Rosher Company filed suit against Guerrero Rocher Company seeking $1,600,000 damages for trademark. Guerrero's counsel estimates that it is probable that Ferrero will be successful against Guerrero. How should Guerrero report the potential loss from the pending litigation? Guerrero does not need to disclose the potential loss. Guerrero must disclose it only in a note to the financial statements. Guerrero must report $1,600,000 contingent loss in the financial statements. QUESTION 5 Q5. On May 4, Guerrero Rocher Company paid $50,000 cash to Kakaako Consulting Group (KCG) for a long-term consulting service. As of Dec. 31, KCG completed 80% of the service. KCG's December 31 adjusting journey entry includes: 0 0 0 0 Debit to Service revenue $40,000 Credit to Service revenue $50,000 Debit to Unearned revenue $40,000 Credit to Unearned revenue $50,000 QUESTION 6 Q6. Guerrero Rocher Company just received the April 30 bank statement. The bank statement and the company's records include: A bank service charge of $50 A deposit in transit of $290 An EFT payment of $1,000 NSF checks totaling $480, and Outstanding checks totaling $1,150 The cash balance in the bank statement is $8,240 before adjustment and the company's record shows cash balance of $8,910 before adjustment. What is the April 30 cash balance after adjustments for the bank reconciliation? $7,180 $7,380 $7,580 $7,780
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