The Balance in the Supplies Account on June 1 Was

question 30

Multiple Choice

The balance in the supplies account on June 1 was $5,200, supplies purchased during June were $3,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is

• A) $5,500.
• B) $3,500.
• C) $10,700.
• D) $6,700.

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Definitions:

Net Identifiable Assets

The assets of a company that can be assigned a fair value in the event of a merger or acquisition, excluding intangible assets that cannot be sold or transferred.

Fair Value

An estimated market price for an asset or liability, reflecting what both parties in a transaction are willing to exchange based on current market conditions.

Fair Value

The cost that would be incurred to transfer a liability or the revenue expected from selling an asset, during a structured exchange among participants in the market, at the point of measurement.

Consolidated Financial Statements

Financial statements that integrate all assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries into one document.