On March 8, Black Candy Company bought supplies on account from the Arcade Fire Company for $550. Black Candy Company incorrectly debited Equipment for $500 and credited Accounts Payable for $500. The entries have been posted to the ledger. the correcting entry should be:

Supplies..............................	550
Equipment.........................	500
Accounts Payable...............	50

Supplies..............................	550
Equipment..........................	550

Supplies..............................	550
Accounts Payable...............	550

Supplies..............................	550
Accounts Payable...............	500
Equipment.........................	50

Question 4

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014:

Accounts payable	$	18,000
Accounts receivable	11,000
Accumulated depreciation equipment	28,000
Advertising expense	21,000
Cash	15,000
Owners capital (1/1/14)	102,000
Owners drawings	14,000
Depreciation expense	12,000
Insurance expense	3,000
Note payable, due 6/30/15	70,000
Prepaid insurance (12-month policy)	6,000
Rent expense	17,000
Salaries and wages expense	32,000
Service revenue	133,000
Supplies	4,000
Supplies expense	6,000
Equipment	210,000

What are total current liabilities at December 31, 2014?

$88,000

$120,000

$18,000

$70,000

Question 5

Jawbreaker Company paid $940 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $490 and a credit to Accounts Receivable, $490. The correcting entry is

Accounts Receivable...........................................................................	490
Cash...............................................................................................	490

Accounts Receivable...........................................................................	490
Accounts Payable.............................................................................	490

Accounts Receivable...........................................................................	490
Accounts Payable...............................................................................	940
Cash...............................................................................................	1,430

Accounts Payable...............................................................................	940
Cash...............................................................................................	940

Question 6

The heading for a post-closing trial balance has a date line that is similar to the one found on

an owner's equity statement.

an income statement.

the worksheet.

a balance sheet.