Unformatted text preview: 6. On February 1, Andrews Company purchased printing supplies of $2,500. A month end
inventory shows that the company has supplies of $900 on hand. The adjusting entry for
this prepaid expense will include
A) a debit to Supplies for $900 and a credit to Supplies Expense for $900
B a debit to Supplies Expense and a credit to Cash for $1,600 6 a debit to Supplies Expense and a credit to Supplies for $1,600
D) a debit to Supplies and a credit to Cash for $900 7. Braxton Company purchased printing equipment at a cost of $12,000. The monthly
depreciation on the equipment is $200. As of December 31, 2006, the balance in
Accumulated Depreciation is $4,800. The book value of the equipment reported on the
December 31, 2006 balance sheet will be
D) $4,800 u L 8. On October 1, 2006, Greer Company signed an $8,000 six-month note payable that bears
interest at a rate of 6%. The total interest to be accrued on this note at December 31, 2006,
D) $480. 9. 'ch of the following is false?
ﬁll Current assets are listed in the order of magnitude.
B) Obligations expected to be paid after one year are classiﬁed as long-term liabilities.
C) Intangible assets are non-current resources that do not have physical substance.
D) Property, plant, and equipment are tangible resources of a relatively permanent nature
that are used in the business and not intended for sale. Page 2 ...
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- Spring '08