Problem I On September 1, 2019 Smith Company purchased an annual insurance policy costing $3,000....
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Problem I On September 1, 2019 Smith Company purchased an annual insurance policy costing $3,000. What adjusting entry should Smith make on December 31, 2019? A) Dr. Insurance Expense 1,000, Cr. Prepaid Insurance 1,000 B) Dr. Insurance Expense 750 Cr. Prepaid Insurance 750 C) Dr. Insurance Expense 3,000. Cr Prepaid Insurance 3,000 D) Dr. Insurance Expense 3,000, Cr. Cash 3,000 2) The weekly payroll for Smith Company is $8,000 and is every Friday at 5 PM. Assume December 31, 2019 fell on a Wednesday. What adjusting entry should Smith make on 12/31/19? A) Dr. Salary Expense 8,000, Cr. Cash 8,000 B) Dr. Salary Expense 3,200, Cr. Salaries Payable 3,200 C) Dr. Salary Expense 4,800. Cr. Salaries Payable 4,800 D) Dr. Salary Expense 1,600, Cr. Salaries Payable 1,600 3) The unadjusted balance in Smith's Supplies t-account showed a debit balance of $3,100. A year-end physical inventory count showed that $300 remained. Smith's adjusting entry on December 31, 2019 should be: A) Dr. Supplies Expense 2,800, Cr. Cash 2,800 B) Dr. Supplies Expense 2,800, Cr. Supplies 2,800 C) Dr. Supplies Expense 300. Cr. Supplies 300 D) Dr. Supplies 2,800, Cr. Supplies Expense 2,800
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