Hi! Please EXPLAIN the below PROBLEMS

THANKS!

*105. The Supplies account had a balance at the beginning of year 3 of $8,000 (before the reversing entry). Payments for purchases of supplies during year 3 amounted to $50,000 and were recorded as an expense. A physical count at the end of year 3 revealed supplies costing $11,500 was on hand. Reversing entries are used by this company. The required adjusting entry at the end of year 3 will include a debit to:

a. Supplies Expense for $3,500.

b. Supplies for $3,500.

c. Supplies Expense for $46,500.

d. Supplies for $11,500. (correct answer: $11,500 + $8,000 $8,000 = $11,500.)

113. On June 1, 2014, Nott Corp. loaned Horn $800,000 on a 12% note, payable in five annual installments of $160,000 beginning January 2, 2015. In connection with this loan, Horn was required to deposit $5,000 in a noninterest-bearing escrow account. The amount held in escrow is to be returned to Horn after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2014. Horn made timely payments through November 1, 2014. On January 2, 2015, Nott received payment of the first principal installment plus all interest due. At December 31, 2014, Nott's interest receivable on the loan to Horn should be

a. $0.

b. $8,000.

c. $16,000. (This is correct answer $800,000 12% 2/12 = $16,000.)

d. $24,000.