7. Jill Clown earned a salary of $500 for the last week of October. She will be paid on November 1. The adjusting entry for Jill's employer October 31 is: a. No entry is readjusting entry for all the last week of Octobe 500 b. Salaries and Wages Expense Salaries and Wages Payable C. Salaries and Wages Expense Cash d. Salaries and Wages Payable 500 500 Cash 500 500 500 At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true? a. Salaries and Wages Expense for the year is overstated. b. Liabilities at the end of the year are understated. c. Assets at the end of the year are understated. d. Stockholders' equity at the end of the year is understated. Which account will have a zero balance after closing entries have been journalized and posted? a. Service revenue. b. Supplies. c. Prepaid Insurance. d. Accumulated Depreciation. 10. A company usually determines the amount of supplies used during a period by. a. adding the supplies on hand to the balance of the Supplies account. b. summing the amount of supplies purchased during the period. c. taking the difference between the supplies purchased and the supplies paid for during the period. d. taking the difference between the balance of the Supplies account and the cost of supplies on hand. If a company fails to make an adjusting entry to record supplies expense, then: a. stockholders' equity will be understated. b. expense will be understated. c. assets will be understated. d. net income will be understated. 72. Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of supplies: a. remaining. b. purchased. c. used. d. either used or remaining