1. Devan Co. began the year with $1,200 in office supplies. During the year, Devan purchased $2,800 worth of additional supplies. At the end of the year, Devan only had $500 worth of supplies remaining. What adjusting entry must Devan make at year end?

Debit: Supplies, $2,100; Credit: Supplies Expense, $2,100

Debit: Supplies Expense, $3,500; Credit: Supplies, $3,500

Debit: Supplies Expense, $2,100; Credit: Supplies, $2,100

Debit: Supplies, $3,500; Credit: Supplies Expense, $3,500

2. Mavis Enterprises received $28,000 from a customer on October 31, 2020 for work beginning immediately and to be completed by February 28, 2021. Mavis credited the cash to Unearned Revenue. As of December 31, 2020, 45% of the work had been completed. What adjusting entry must Mavis make at February 28, 2021?

Debit: Unearned Revenue, $15,400; Credit: Revenue, $15,400

Debit: Revenue, $12,600; Credit: Unearned Revenue, $12,600

Debit: Cash, $28,000; Credit: Unearned Revenue, $28,000

Debit: Unearned Revenue, $12,600; Credit: Revenue, $12,600

3. The payroll for a 5-day work week for Roger, Inc. is normally $35,000. If December 31 falls on a Tuesday, how much salary must Roger accrue for the year ending December 31 and which account will be credited?

$35,000; Wages Payable

$14,000; Wage Expense

$21,000; Wages Payable

$21,000; Wage Expense

$35,000; Wage Expense

$14,000; Wages Payable

4. Hartmann Co. provided $42,000 worth of maintenance services to a customer, Simmons Co., the last week of December 2020. Hartmann did not invoice the customer until January 3, 2021. What adjusting entry must Simmons make at December 31, 2020?

No entry needed on December 31, 2020

Debit: Accounts Receivable, $42,000; Credit: Revenue, $42,000

Debit: Maintenance Expense, $42,000; Credit: Accounts Payable, $42,000

Debit: Accounts Payable, $42,000; Credit: Maintenance Expense, $42,000

Debit: Revenue, $42,000; Credit: Accounts Receivable, $42,000

5. Gateway Inc. bought a machine on January 1, 2021 for $50,000. Gateway plans to keep the machine for 10 years. What is the machines carrying value on June 30, 2023 assuming Gateway uses straight-line depreciation?

$37,500

$50,000

$40,000

$45,000

$35,000