First Section Practice Problems 2 with Solutions

First Section Practice Problems 2 with Solutions - Supplies...

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Unformatted text preview: Supplies Inventory 15,000 Inventory Supplies Purchases 200,000 190,000 Expense 25,000 Practice Problems 1. Supplies inventory had a $15,000 balance at the beginning of September 2010 and had a balance of $25,000 at the end of September. There was $200,000 of supplies purchased during September. What was supplies expense during the month of September? a. $190,000 b. $15,000 c. $25,000 d. $200,000 2. Which of the following transactions would not have an impact on assets? a. Wages being incurred but not yet paid. b. Wages being incurred and paid. c. Purchase of equipment on credit. d. Payment of a dividend that was declared earlier in the month. All other transactions impact an asset (Cash or Equipment) Annual Depreciation Expense Annual Depreciation Expense Annual Depreciation Expense So, after year 1, you've booked the following adjusting entry: Depreciation Expense $40,000 Accumulated Depreciation $40,000 Therefore, book value of the equipment would be $210,000 (orignal purchase price) less $40,000 (accumulated depreciation)...
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This note was uploaded on 12/17/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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First Section Practice Problems 2 with Solutions - Supplies...

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