Hamilton Laundry purchased $7,000 worth of supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the supplies indicated only $1,000 on hand. The adjusting entry that should be made by the company on June 30 is
A. debit supplies Expense and credit Supplies for $6,000
B. debit Supplies Expense and credit Supplies for $1,000
C. debit Supplies and credit Supplies Expense for $1,000
D. debit Supplies and credit Supplies Expense for $6,000
Ans: A. debit supplies Expense and credit Supplies for $6,000
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Which of the following pairs of terms in the area of financial statement analysis are synonymous?
a. Ratio — Trend b. Horizontal — Trend c. Vertical — Ratio d. Horizontal — Ratio
Jaycee Auto Repair has the following budgeted costs for the next year:
Time Charges Material Charges Shop employees' wages and benefits $120,000 $- Parts manager's salary and benefits - 45,000 Office employee's salary and benefits 30,000 15,000 Other overhead 15,000 40,000 Invoice cost of parts and materials - 400,000 Total budgeted costs $165,000 $500,000 Jaycee Auto Repair budgets 7,500 hours of repair time and it desires a profit margin of $25 per hour of labor. A markup on material cost is assumed to be 40%. Jaycee estimates that the repairs to a Cadillac Escalade damaged in an accident will take 45 hours of labor and $3,500 in parts and materials. The total cost of the repairs is a) $7,015. b) $5,890. c) $5,775. d) $7,890.