Reference no: EM132768571

On January 1, a company had office supplies, costing $2,900. During the year, a company bought (and recorded) additional office supplies costing $8,200. On December 31, a physical count of office supplies revealed that supplies costing $4,600 remained.

Problem 1: Which debit or credit is correctly included in the adjusting journal entry necessary on December 31 to record the supplies that the company used during the year?

A. Debit to office supplies for $9,900
B. Credit to office supplies expense for $6,500.
C. Credit to office supplies for $6,500.
D. Debit to office supplies expense for $9,900.

On May 1 of Year 1, a company received $3,600 cash or rent in advance. This $3,600 rental receipt covers the period from May 1 of Year 1 to April 30 of Year 2.

Problem 2: Which debit or credit is correctly included in the adjusting journal entry necessary on December 31 with respect to the rent received in advance?

A. Credit to rent revenue for $1,200
B. Debit to rent revenue for $1,200
C. Debit to rent revenue for $2,400
D. Credit to rent revenue for $2,400