The following information relates to the Muscat Company at the end of 2019. The accounting period is the calendar year.

The Office Supplies on Hand showed a balance of OMR 3,500 at the beginning of 2019. Supplies costing OMR12,000 were purchased during 2019 and debited to the asset account. Supplies of OMR 2,200 were on hand at December 31, 2019. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Select one:

a. None of the answers are correct

b. Supplies Expense ............................................................. 1,200

Office Supplies........................................ 1,200

c. Supplies Expense ............................................................. 12,000

Office Supplies........................................ 12,000

d. Supplies Expense ............................................................. 13,300

Office Supplies........................................ 13,300

e. Office Supplies ............................................................. 3,500

Cash......................................... 3,500

2) On October 5th, Muscat Company hires four new employees to begin work on October 15. Each employee is to receive a weekly salary of OMR 1,000 for a 5-days work week, payable every 2 weeks- first payment made on October 26. the company should make the following entry:

Select one:

a. Salary Expense ................................................. 4,000

Cash ................................................. 4,000

b. Insurance Expense .8,000

Cash............................................................................. 8,000

c. No entry is required.

d. None of the answers are correct

e. Insurance Expense ................................................ 6,000

Prepaid Insurance .................................................... 6,000

3)On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year at 8% interest. Interest is due when the principal is paid. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Select one:

a. Interest Expense ..................................................................640

Interest Payable ....................................................... 640

b. Cash .................................................................. 8,000

Notes Payable ....................................................... 8,000

c. None of the answers are correct

d. Interest Expense .................................................................. 8,000

Interest Payable ....................................................... 8,000

e. Interest Expense .................................................................. 160

Interest Payable ....................................................... 160