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A company purchased office supplies costing $3,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count
A company purchased office supplies costing $3,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $600 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: debit Office Supplies Expense, $3,600; credit Office Supplies, $3,600. debit Office Supplies, $600; credit Office Supplies Expense, $600. debit Office Supplies Expense, $2,400; credit Office Supplies, $2,400. debit Office Supplies, $2,400; credit Office Supplies Expense, $2,400. The balance in the prepaid rent account before adjustment at the end of the year is $12,000 and represents three months rent paid on December 1. The adjusting entry required on December 31 is: debit Prepaid Rent, $4,000; credit Rent Expense $4,000. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000. debit Rent Expense, $12,000; credit Prepaid Rent, $12,000. debit Rent Expense, $4,000; credit Prepaid Rent, $4,000
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