{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Untitled-2 - 6 On February 1 Andrews Company purchased...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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 A) $12,000 B) $11,800 @ $7,200 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, IS A $40. $120. C) $240. 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 ...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online