When a company makes an end-of-period adjusting entry, which includes a debit to Supplies Expense, the usual credit entry is made to:

A) Accounts Payable.

B) Supplies.

C) Cash.

D) Retained Earnings.

Answer: B

When a company makes an end-of-period adjusting entry that includes a credit to Prepaid Rent, the debit is usually made to:

A) Cash.

B) Rent Expense.

C) Rent Payable.

D) Rent Receivable.

Answer: B

Which of the following is a possible adjusting entry?

A) Debit Cash, credit Accounts Payable.

B) Debit Service Revenue, credit Cash.

C) Debit Salaries Expense, credit Salaries Payable.

D) Debit Utilities Expense, credit Retained Earnings.

Answer: C

A company orders office supplies in June. Those supplies are received and used in July. The supplies are paid for in August. In which month should the company record supplies expense?

A) June.

B) July.

C) August.

D) Evenly over the three months.

Ch3 answer: B

A company orders office supplies in June. Those supplies are received and paid for in July. The supplies are used in August. In which month should the company record supplies expense?

A) June.

B) July.

C) August.

D) Evenly over the three months.

Ch3 answer: C