Which of the following options is a characteristic of adjusting entries?

Made at the end of the period

Made at the beginning of the period

Includes two balance sheet items

Always includes cash

Blue Inc. pays a 1-year insurance premium of $6,000 upfront on March 1. Assume adjusting entries are recorded at the end of each month.

What is the adjusting journal entry on March 31?

Dr. Prepaid Insurance 6,000; Cr. Insurance Expense 6,000

Dr. Prepaid Insurance 500; Cr. Insurance Expense 500

Dr. Insurance Expense 500; Cr. Prepaid Insurance 500

Dr. Insurance Expense 6,000; Cr. Prepaid Insurance 6,000

Assume beginning retained earnings is $14,000 and Net loss is ($2,000).

What is the ending balance in retained earnings?

$12,000

$16,000

($14,000)

$14,000

If the Supplies account had a beginning balance of $1,000 and the actual count for the remaining supplies was $200 at the end of the period, what adjustment would be needed?

Debit Supplies $200

Credit Supplies $200

Debit Supplies $800

Credit Supplies $800