Question 56 2 pts Red Systems Corp. has grown significantly over the past year. One area that has plagued the Controller of Red is the reconciliation of supplies expense. The end-of-year supplies on hand totaled $20, and purchases totaled $500, and supplies on hand at the beginning of the year amounted to $200. How much will Red Systems report as supplies expense for the current year? $200 $700 ooo $220 $680 U Question 57 2 pts Farnsworth Company borrowed on a two-year, 10%, $150,000 note on May 1, with interest and principal to be paid at maturity. How much interest will Farnsworth report on its income statement for the year ending December 31? $30,000 $5,000 $15.000 $10,000 Blear Industrial plant operates five days per week with a daily payroll of $4,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday). The last day of the month is Wednesday, March 31. What is the effect of the correct adjustment at March 31? Increases Wages Payable and decreases Cash by $12,000 Increases Wages Payable and increases Wages Expense by $8,000 Increases owners' equity and Wages Payable by $8,000 Decreases owners' equity and increases Wages Payable by $12,000 Question 59 2 pts Cradle Industrials' plant operates five days per week with a daily payroll of $6,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday). The last day of the month is Wednesday, March 31. What is the amount of Wages Expense recorded on the next payday, Saturday, April 3? $12,000 $18,000 $30,000 SO Question 60 2 pts Which of the following adjusting entries involves the cash account? Deferred Revenue Deferred Liability None of the Above Accrued Asset Question 64 1 pts A franchiser, such as McDonalds Corporation, is permitted to recognize the revenue from the sale of a franchise whenever they wish. True False