.Your firm buys $27,000 of office supplies and debits Supplies Expense. If, at year end, $6,000 of supplies are on hand, what adjusting entry will you record?
a.Supplies On Hand6,000
Supplies Expense6,000
b.Supplies On Hand21,000
Supplies Expense21,000
c.Supplies Expense21,000
Supplies OnHand21,000
d.Supplies Expense6,000
Supplies On Hand6,000
2.Your company prepays $15,000 for a 1-year insurance policy that you recorded in Prepaid Insurance. When the fiscal year ends 3 months later, what adjusting entry will you record?
a.Prepaid Insurance11,250
Insurance Expense11,250
b.Prepaid Insuranc1e3,750
Insurance Expense3,750
c.Insurance Expense11,250
Prepaid Insurance11,250
d.Insurance Expense3,750
Prepaid Insurance3,750
3.On October 1, your calendar year company signs a $20,000 contract to have its offices painted and makes a down-payment of $14,000 that you recordedin Painting Expense. If, on December 31, management informs you that 25% of the work has been completed, what adjusting entry will you record?
a.a debit to Painting Expense for $5,000
b.a credit to Painting Expense for $9,000
c.a debit to Painting Expense for $9,000
d.a credit to Painting Expense for $5,000
4.Your calendar year company pays $12,000 a year for security services. On November 1, you remit payment for the next 3 months' service and record it in Prepaid Security Expense. At year end, what adjusting entry will you record?
a.Prepaid Security Expense1,000
Security Expense1,000
b.Security Expense2,000
Prepaid Security Expense2,000
c.Security Expense3,000
Prepaid Security Expense3,000
d.Prepaid Security Expense1,000
Cash1,000
