ACCT1501 2015 Quiz 2 - Q1-5.odt - Question 1 Correct Mark...

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Question 1 Correct Mark 1.00 out of 1.00 Flag question Question text The supplies account has a balance of $975 at the beginning of the year and was debited during the year for $2800, representing the total of supplies purchased during the year. If $750 of supplies is on hand at the end of the year, the supplies expense to be reported on the profit and loss statement for the year is: Select one: a. $750 b. $975 c. $2800 d. $3025. For the supplies account, during the period, Closing balance (i.e. supplies on hand, $750) = opening balance ($975) + supplies purchased ($2800) - supplies used Supplies expenses incurred during the year = $975+ $2800 -$750=$3025 The correct answer is D. The journal entry to record supplies expense is: DR supplies expense $3025 CR supplies $3025 Feedback The correct answer is: $3025.
Question 2 Correct Mark 1.00 out of 1.00 Flag question Question text If we pay a 12-month insurance premium of $600 on 1 February 2011, at 30 June 2011 the prepayment will be equal to: Select one:
Prepayments are assets that become expenses as they expire or get used up. Through passage of time

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