Your company purchased $2,000 of supplies and recorded the amount as an asset. At year end,...

Your company purchased $2,000 of supplies and recorded the amount as an asset. At year end, a physical count shows $700 of supplies on hand. Before closing the books, it is discovered that an adjusting entry was never made. If no correcting entry is made, the balance sheet will be accurate, but the income statement will be understated assets will be understated and net income will be overstated assets will be overstated and net income will be overstated the income statement will be accurate, but the balance sheet will be understated assets will be overstated and net income will be understated assets will be understated and net income will be understated

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ekkarill92 answered 1 year ago

Vaughn Company purchased supplies costing $3900 and debited Supplies for the full amount. At the end...

Vaughn Company purchased supplies costing $3900 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1300 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be debit Supplies, $1300; credit Supplies Expense, $1300. debit Supplies Expense, $1300; credit Supplies, $1300. debit Supplies Expense, $2600; credit Supplies, $2600. debit Supplies, $2600; credit Supplies Expense, $2600.

A total of $4,200 in supplies was purchased during the year. At the end of the...

A total of $4,200 in supplies was purchased during the year. At the end of the year $1,100 of the supplies were left. The adjusting entry needed at the end of the year is: Multiple Choice debit Supplies Expense $4,200; credit Supplies $4,200 debit Supplies Expense $3,100; credit Supplies $3,100 debit Supplies Expense $1,100; credit Supplies $1,100 debit Supplies $3,100; credit Supplies Expense $3,100

Book Journal entries for the following transactions: The amount of supplies purchased was $40,000. End of...

Book Journal entries for the following transactions: The amount of supplies purchased was $40,000. End of the year supply count showed that there was a $10,000 balance. All supplies were purchased with credit. ½ the liability was paid by year-end. Building was purchased on 4/1 for $900,000 cash. Salvage/residual value of $100,000 exists. Straight-line is used over a 20-year life We needed funds, so we signed a note on 7/1 for $100,000. We agreed to pay back the note at...

A healthcare company purchased a new MRI machine on 1/1/X3. At year-end the company recorded a...

A healthcare company purchased a new MRI machine on 1/1/X3. At year-end the company recorded a straight-line deprecation expense of $75,000 for book purposes and double-declining balance depreciation expense of $94,000 for tax purposes. Management estimates warranty expense in 20X3 to be $150,000. The company's tax rate is 37%. Assuming these are the only relevant entries for deferred taxes, the company's recorded change in deferred tax asset and liabilities on 12/31/X3 are closest

A total of $3,700 in supplies was purchased during the year. Bythe end of the...

A total of $3,700 in supplies was purchased during the year. By the end of the year, the company had used $2,200 of the supplies. The adjusting entry needed at the end of the year is:Multiple Choicedebit Supplies $2,200; credit Supplies Expense $2,200debit Supplies Expense $1,500; credit Supplies $1,500debit Supplies Expense $2,200; credit Supplies $2,200debit Supplies Expense $3,700; credit Supplies $3,700

15–20... If the adjusting entry for supplies used is not recorded at the end of a...

15–20... If the adjusting entry for supplies used is not recorded at the end of a year, how will the following be affected at the end of the year? (Answer using one of the following: not affected, overstated, or understated.) 15. Assets at end of year ............................................................................................. 16. Liabilities at end of year ......................................................................................... 17. Stockholders’ equity at end of year ..................................................................... 18. Revenues for year .................................................................................................. 19. Expenses for year .................................................................................................. 20. Net...

BFI had $100 of office supplies at January 1, 2016 and purchased $2,000 of office supplies...

BFI had $100 of office supplies at January 1, 2016 and purchased $2,000 of office supplies during 2016. BFI has $750 of office supplies on the shelf at December 31, 2016. How much office supplies expense should BFI recognize in the Income Statement for the year ended December 31, 2016? 1. $1,350 2. $750 3. $2,100 4. $0 5. None of the above 2.5 points QUESTION 26 On June 1, 2016, BFI paid $4,000 for a 24-month insurance policy effective...

4. in 2018 jhj shoe company purchased supplies paying cash in the amount of 5,000 and...

4. in 2018 jhj shoe company purchased supplies paying cash in the amount of 5,000 and purchased an additinal 10,000 in supplies on account .at the end of the year supllies on hand totaled 4,000.record the journal entry to acquire supplies and the adjusting entry required at year end .your adjusting entry should entry should reflect the fact that beginning supplies for 2018 were 5,000 9. on july ,2017 jhj rental car company purchased a 12 month insurance policy for...

During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts of

Question: During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts ofunearned revenues in liability accounts. At the end of its annual accounting period, the company mustmake three adjusting entries:(1) Accrue salaries expense. Dr. ___ Cr. ___(2) Adjust the Unearned Services Revenue account to recognize earned revenue. Dr. ___ Cr. ___(3) Record services revenue earned for which cash will be received the following period. Dr. ___ Cr. ___For each of the adjusting entries (1), (2),...

Bonita Laundry purchased $7100 worth of supplies on June 2 and recorded the purchase as an...

Bonita Laundry purchased $7100 worth of supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the supplies indicated only $1010 on hand. The adjusting entry that should be made by the company on June 30 is Debit Supplies, $6090; Credit Supplies Expense, $6090. Debit Supplies Expense, $1010; Credit Supplies, $1010. Debit Supplies, $1010; Credit Supplies Expense, $1010. Debit Supplies Expense, $6090; Credit Supplies, $6090.

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