During its first three months of operations, Cari's Bakery, Inc. purchased supplies such as plates, napkins, bags, and cutlery for $9,000 and recorded this as supplies inventory. Supplies on hand at the end of the first quarter, amount to $5, 600. To prepare financial statement for the first quarter, the company must record which of the following accounting adjustments? A) Increase Supplies expense by $5, 600 and decrease Supplies inventory by $5, 600 B) Increase Supplies expense by $3, 400 and decrease Supplies inventory by $3, 400 C) Increase Supplies inventory by $5, 600 and decrease Supplies expense by $5, 600 D) Increase Supplies inventory by $3, 400 and decrease Supplies expense by $3, 400 E) None of the above On December 31, 2017, State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to manufacture a bridge over the New River. State Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project Contract price $780 million Estimated construction costs $600 million Estimated total profit $180 million During the three-year construction period, State Construction incurred costs as follows: 2018 $ 60 million 2019 $360 million 2020 $180 million State Construction uses the cost-to-cost method to recognize revenue. Which of the following represent the revenue recognized in 2018, 2019, and 2020? A) $225 million, $300 million, $2550 million B) $60 million, $240 million, $120 million C) $33 million, $198 million, $99 million D) $78 million, $468 million, $234 million E) None of the above On January 1, Fey Properties paid $12, 600 for a three-year insurance premium, with coverage beginning immediately. Fey Company prepares monthly financial statements. Which of the following describes the required adjusting entry on January 31? A) Debit Cash for $4, 200 and Credit Prepaid insurance for $4, 200 B) Debit Prepaid insurance for $350 and Credit Insurance expense for $350 C) Debit Insurance expense for $350 and Credit Prepaid insurance for $350 D) Debit Cash for $8, 400 and Credit Prepaid insurance for $8, 400 E) Debit insurance expense for $4, 200 and Credit Prepaid insurance for $4, 200 During fiscal 2016, Caleres Inc. (formerly Brown Shoe Company), reported cost of goods sold of $1, 517 4 million, Inventory at the start of the year was $546.7 million and at the end of the year was $585.8 million. Which of the following describes the closing entry that the company will make for these accounts? A) Debit Inventory $39.1 million B) Credit Inventory $585.8 million C) Credit Cost of goods sold $1, 517.4 million D) Both A and C E) None of the above