Solved

Read the Description of Following Adjustments That Are Required at the End

Question 88

Short Answer

Read the description of following adjustments that are required at the end of the accounting period for Hubbard Repair Services. Determine the account and amount to be debited and the account and amount to be credited.
A. Purchased supplies for $2,000 on November 1, 2019. Inventory of supplies was $600 on November 30, 2019. Record the adjustment for the amount of the supplies that were used during the month of November 2019.
B. Signed a 4-month contract for $2,400 of prepaid advertising on November 1, 2019. Record the adjustment for the amount of the advertising contract that expired during the month of November 2019.
C. Prepaid rent for the year on November 1, 2019. Rent expired during the month of November 2019, $1,500. Record the adjustment on November 30, 2019.
D. Depreciation is computed using the straight-line method. Equipment purchased on November 1, 2019, for $6,000 has an estimated useful life of 5 years with no salvage value. Record the adjustment on November 30, 2019.

Correct Answer:

verifed

Verified

A. Debit Supplies Expense, $1,400; credi...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents