Question

Question 7 (7 points)

During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Bravo properly recognized Unearned Revenue. The adjusting entry to record on July 31 includes:

Question 7 options:

	a debit to Cash for $2,000
	a debit to Unearned Revenue for $400
	a credit to Revenue for $2,000
	a credit to Unearned Revenue for $400

Question 8 (7 points)

On January 7, Bravo purchased supplies on account for $1,000, and recorded this purchase to the Supplies account. At the end of January, Bravo had $600 of these supplies still on hand. The proper adjusting journal entry at January 31 would:

Question 8 options:

	include a credit to Supplies for $400
	include a debit to Supplies Expense for $600
	include a debit to Accounts Payable for $400
	include a debit to Supplies for $1,000

Answer 1

Question -7;

Answer is option (a debit to Unearned Revenue for $400)

Explanation;

Following adjusting entry will be made on July 31;

Date	Accounts Title	Debit	Credit
July 31	Unearned Revenue	$400
	Revenue		$400

Question -8;

Answer is option (include a credit to Supplies for $400)

Explanation;

Following adjusting entry will be made on January 31;

Date	Accounts Title	Debit	Credit
Jan. 31	Supplies Expense	$400
	Supplies		$400