Question
TheBlossom Companypurchased $10030worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies
TheBlossom Companypurchased $10030worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1770on hand. The adjusting entry that should be made by the company on June 30 is:
debit Supplies, $1770; credit Supplies Expense, $1770.
debit Supplies, $8260; credit Supplies Expense, $8260.
debit Supplies Expense, $1770; credit Supplies, $1770.
debit Supplies Expense, $8260; credit Supplies, $8260.
On July 1 theSwifty Corporationpaid $18240to Acme Realty for6months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by theSwifty Corporationis:
debit Rent Expense, $18240; credit Prepaid Rent, $3040.
debit Prepaid Rent, $3040; credit Rent Expense, $3040.
Metlock, Inc.received a check for $16200on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $16200. Financial statements will be prepared on July 31.Metlock'sshould make the following adjusting entry on July 31:
debit Unearned Rent Revenue, $2700; credit Rent Revenue, $2700.
debit Unearned Rent Revenue, $16200; credit Rent Revenue, $16200.
debit Cash, $16200; credit Rent Revenue, $16200.
At December 31, 2022, before any year-end adjustments,Sheffield Corp.'s Prepaid Insurance account had a balance of $4450. It was determined that $1910of the Prepaid Insurance had expired. The adjusted balance for Prepaid Insurance for the year would be:
$6040.
$4450.
$1910.
$2540.
debit Rent Revenue, $2700; credit Unearned Rent Revenue, $2700.
debit Rent Expense, $18240; credit Prepaid Rent, $15200.
debit Rent Expense, $3040; credit Prepaid Rent, $3040
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