Problem I 1) On May 1, 2020 Smith Company purchased an annual insurance policy costing $3,000 What adjusting entry should Smith make on December 31, 2020? A) Dr. Insurance Expense 1,000, Cr. Prepaid Insurance 1,000 B) Dr. Insurance Expense 2,000, Cr. Prepaid Insurance 2,000 C) Dr. Insurance Expense 3,000 Cr Prepaid Insurance 3,000 D) Dr. Insurance Expense 3,000. Cr. Cash 3,000 E) Dr. Insurance Expense 750. Cr. Prepaid Insurance 750 2) The weekly payroll for Smith Company is $8,000 and is paid every Friday at 5PM Assume December 31, 2020 fell on a Thursday. What adjusting entry should Smith make on 12/31/202 A) Dr. Salary Expense 8,000, Cr. Cash 8,000 B) Dr. Salary Expense 1,600, Cr. Salaries Payable 1,600 C) Dr. Salary Expense 3,200, Cr. Salaries Payable 3,200 D) Dr. Salary Expense 4,800, Cr. Salaries Payable 4,800 E) Dr. Salary Expense 6,400, Cr. Salaries Payable 6,400 3) The unadjusted balance in Smith's Supplies t-account showed a debit balance of $3,100 A year-end physical inventory count showed that $150 remained Smith's adjusting entry on December 31, 2020 should be: A) Dr. Supplies Expense 3.100. Cr. Cash 3,100 B) Dr. Supplies Expense 3,100, Cr. Supplies 3,100 C) Dr. Supplies Expense 150. Cr. Supplies 150 D) Dr. Supplies Expense 2,950, Cr. Supplies 2,950 E) Dr. Supplies 2,950, Cr. Supplies Expense 2.950 4) Smith bought a new automobile on January 1, 2020 for $30,000 and it is expected to last for 5 years. Smith calculates the annual wear and tear on his automobile to be $6,000. Therefore, his adjusting entry on December 31, 2020 should be: A) Dr. Depreciation Expense-Auto 6,000, Cr. Auto 6,000 B) Dr. Depreciation Expense-Auto 6,000, Cr. Cash 6,000 C) Dr. Depreciation Expense-Auto 6,000. Cr. Accumulated Depreciation-Auto 6,000 D) Dr. Auto Expense 6,000, Cr. Accumulated Depreciation-Auto 6,000 E) Dr. Auto Expense 6,000, Cr. Cash 6,000