A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,245 of supplies on hand. The general ledger balance before any adjustment is $2,050. What is the adjusting entry for supplies that should be recorded on May 31? Multiple Choice Debit Supplies Expense $1245 and credit Supplies $1245. Debit Supplies $1245 and credit Cash $1245 Debit Prepaid Supplies $805 and credit Supplies Expense $805 Debit Supplies Expense $1245 and credit Supplies $2050. Debit Supplies Expense $805 and credit Supplies $805 On December 1, Simpson Marketing Company received $5,100 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include: Multiple Choice a credit to Unearned Revenue for $1,700 a credit to Services Revenue for $3.400 a debit to Services Revenue for $5,100. a debit to Services Revenue for $3,400, a debit to Unearned Revenue for $2.550 A company purchased new furniture at a cost of $32,000 on January 1. The furniture is estimated to have a useful life of 5 years and a salvage value of $3,800. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31? Multiple Choice $1,410 $1,790 O $5,590 O $1,600 $5,640 O On December 1, Milton Company borrowed $500,000, at 9% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? Multiple Choice Debit Interest Expense, $3,750, credit Cash, $3,750. Debit Interest Expense, $7,500; credit Interest Payable, $7,500. Debit Interest Expense, $3,750, credit Interest Payable, $3,750. Debit Interest Payable, $3,750, credit Interest Expense, $3,750 Debit Interest Expense, $45,000, credit Interest Payable, $45,000 On September 1. Kennedy Company loaned $126,000, at 14% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? Multiple Choice Debit Interest Expense, $17,640; credit Interest Payable, $17,640. Debit Interest Expense, $5.880, credit Interest Payable, $5.880. Debit Interest Receivable, $5,880, credit Interest Revenue, $5,880. Debit Interest Receivable, $17,640, credit Cash, $17640 Debit Cash, $5,880, credit Interest Revenue, $5,880