50 Callahan, Inc. started the year with $1.000 of supplies. During the year. CatatanInc. purchased and paid for $3,000 of supplies. At the end of the year, Callahan, Inc. had $1200 of supplies remaining What amount of supplies expense should Callahan, Inc. report for the year? a. 54.000 b. $3,200. $3,000. d. $2.800 51. Caboni and Associates, a public accounting firm, pred the November financial statement for der on December 20 and sent the client a $1.000 invoice on the same day. The tried the $1.000 involo on December 21. The client mailed a check for $1.000 to Caboni and Associates on January 3. The 51.000 check was received by Caboni and Associates on January 7. Caboni and Associates uses the accrual basis of accounting, then on which date should the $1,000 be recorded as revenue by Caboni and Associates? a. January 7 b. January 3 December 27 d. December 20. oz. Lady Topper Company has the following amounts: total liabilities of $150.000: common stock $100.000 and retained earnings $200,000. Use the accounting equation to calculate total assets: 3. $250,000 b. $300.000 c. $450,000 d. $350.000 53. Which of the following is not a revenue account? a. Interest revenue b. Uneamed revenue C Service revenue d. Sales revenue 54 Fallure to prepare the adjusting journal entry to record an accrued revenue would cause a. Net income to be overstated b. An understatement of revenues and an understatement of assets. cAn overstatement of assets and an overstatement of liabilities. d. An overstatement of revenues and an overstatement of assets. 55Titans Co. sold merchandise for $1,000 to Big Red Co. on Dec. 1 on account. Credit terms for the sale were 1/10, n/30. Big Red Coretumed $100 of merchandise to the Titans Co. on Dec. 5. What amount of cash will Big Red Co. have to pay to the Titans Co. Big Red Co. pays the amount due on Dec. 9? a5891 S990 c. $810 d. $900. 56. Supplies are usually reported on the balance sheet as part of which classification? Current assets b intangible assets C Property, plant and equipment d. Long-term investments 57. Which of the following is true about the perpetual inventory system? a. It constantly updates the inventory account for every sale and purchase It only updates the inventory account at the end of the accounting period C. It only records the cost of goods sold at the end of the accounting period d. It does not keep detailed records of the inventory on hand at all times