The Kookie Kutter Bakery purchased $6,500 worth of baking supplies on June 2 and recorded the purchase as an expense. On June 30, an inventory of the baking supplies indicated $3,000 of supplies is still on hand. The adjusting entry that should be made by the company on June 30 is

Question 8 options:

debit Baking Supplies Expense, $3,000; credit Baking Supplies, $3,000.

debit Baking Supplies Expense, $3,500; credit Baking Supplies, $3,000.

debit Baking Supplies, $3,000; credit Baking Supplies Expense, $3,000.

debit Baking Supplies Expense, $3,500; credit Baking Supplies, $3,500.

Which of the following items is NOT classified as an adjusting entry?

Question 9 options:

Prepaid Expenses

Accrued Expenses

Unearned Revenues

Owner's Capital