#4 - 1. Use this information to answer the following...

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Unformatted text preview: 1. Use this information to answer the following question. The trial balance for Tsung Corporation appears as follows: Tsung Corporation Trial Balance December 31, 20x7 Cash $ 200 Accounts Receivable 500 Prepaid Insurance 50 Supplies 150 Office Equipment 400 Accumulated Depreciation Office Equipment $ 200 Accounts Payable 300 Common Stock 600 Service Revenue Earned 500 Salaries Expense 100 Rent Expense 200 ______ $1,600 $1,600 If on December 31, 20x7, supplies on hand were $20, the adjusting entry would contain a A) credit to Supplies for $20 B) credit to Supplies Expense for $130 C) debit to Supplies Expense for $130 D) debit to Supplies for $20 Feedback: You have $150 before the adjustment. You expect to have $20 on hand after the adjustment. Hence, the adjustment will be $130. You will debit (increase) $130 supplies expense and credit (reduce) $130 supplies Points Earned: 1.0/1.0 2. Use this information to answer the following question. The trial balance for Tsung Corporation appears as follows: Tsung Corporation Trial Balance December 31, 20x7 Cash $ 200 Accounts Receivable 500 Prepaid Insurance 50 Supplies 150 Office Equipment 400 Accumulated Depreciation Office Equipment $ 200 Accounts Payable 300 Common Stock 600 Service Revenue Earned 500 Salaries Expense 100 Rent Expense 200 ______ $1,600 $1,600 If on December 31, 20x7, the insurance still unexpired amounted to $20, the adjusting entry would contain a A) debit to Prepaid Insurance for $30 B) credit to Prepaid Insurance for $30 C) debit to Insurance Expense for $20 D) credit to Prepaid Insurance for $20 Feedback: You have $50 prepaid insuracne before adjustment. You will have $20 unexpired insurance after adjustment. Hence, the adjustment should be $30. You need to debit (increase) $30 insurance expense and credit (reduce) prepaid insurance $30. Points Earned: 1.0/1.0 3. Use this information to answer the following question. The trial balance for Tsung Corporation appears as follows: Tsung Corporation Trial Balance December 31, 20x7 Cash $ 200 Accounts Receivable 500 Prepaid Insurance 50 Supplies 150 Office Equipment 400 Accumulated Depreciation...
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#4 - 1. Use this information to answer the following...

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