The Town Laundry Ltd. purchased $4,500 worth of laundry supplies on June 2 and recorded the purchase as an asset in the Supplies account. On June 30, a count of the laundry supplies indicated only $2,500 on hand. The adjusting entry that should be made by the company on June 30 is:

1. debit Supplies Expense, $2,000; credit Supplies, $2,000.

2. debit Supplies, $2,500; credit Supplies Expense, $2,500.

3. debit Supplies Expense, $2,500; credit Supplies, $2,500.

4. debit Supplies, $2,000; credit Supplies Expense, $2,000

2)

All of the following accounts would have normal credit balances, except

1. Dividends Declared.

2. Bank Loan Payable.

3. Accounts Payable.

4. Unearned Revenue.

3)

The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000 and represents three months rent starting on November 1. The adjusting entry required on December 31, assuming adjusting entries have not previously been made, is

1. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000.

2. debit Rent Expense, $12,000; credit Prepaid Rent, $12,000.

3. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000.

4. debit Prepaid Rent, $4,000; credit Rent Expense $4,000.