The balance in Toller Co.s office supplies account on August 1, 2019 was $1,200. Toller purchased office supplies costing $885 during the month, in addition a physical count revealed supplies on hand totaling $1,180 at the end of August. What was the office supplies expense for August?

Multiple Choice

• $820.

• $905.

• $885.

Sorley Co. paid $36,000 cash for a two-year insurance policy on January 1, 2020 with coverage beginning on that date. Sorley Co. follows a policy of recording all prepaid expenses in asset accounts at the time of cash payment.The journal entry Sorley would record on December 31, 2020 would include:

Multiple Choice

• A credit to Cash, $18,000.

• A credit to Prepaid Insurance, $18,000.

• A debit to Prepaid Insurance, $18,000.

Scurry Co. reported the following in 2020: Earned revenues, $88,000 ($62,000 cash received from customers); Total expenses, $42,000 ($34,000 cash paid); Prepaid $12,000 cash for costs that will not be expensed until next year. Net income under the accrual basis of accounting in 2020 was:

Multiple Choice

• 18,000

• 46,000

• 62,000

• 28,000

If equity is $280,000 and assets are $412,000, then liabilities equal:

Multiple Choice

• $218,000

• $692,000

• $132,000

• $244,000

Salter Co. made purchases on account totaling $32,400, and in addition paid $24,800 cash on its accounts payable during the month of September 2020. If the balance in the accounts payable account was $12,200 at the beginning of September, what was the balance in accounts payable at the end of September?

Multiple Choice

• $8,200.

• $18,400.

• $45,400.

• $19,800.