The Unadjusted Trial Balance Columns of a Company's Work Sheet

question 68

Multiple Choice

The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750.The Adjustments columns shows a credit of $425 for supplies used during the period.The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:

• A)$325 debit.
• B)$325 credit.
• C)$425 debit.
• D)$750 debit.
• E)$425 credit.

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Definitions:

Revoked

Withdrawn, cancelled, or annulled, often referring to the withdrawal of an offer, license, or privilege.

Personal Property

All movable property that is not classified as real estate, including vehicles, furniture, and intellectual property.

Bailment

A legal relationship in common law where physical possession of personal property, or chattel, is transferred from one person (the 'bailor') to another (the 'bailee') who subsequently holds possession of the property under a certain agreement.

Lease

A contractual agreement by which an owner of property allows another party to use the property for a specified period of time in exchange for payment.