A Company Started the Year with $1,500 of Supplies on Hand

question 110

Multiple Choice

A company started the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 and recorded them as increase to the supplies asset. At the end of the year the company determined that only $300 of supplies are still on hand. What is the adjusting journal entry to be made at the end of the period?

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Board of Directors

A group of individuals elected to represent shareholders and make major decisions concerning the company's operations, finance, and policies.

Personal Capacity

Refers to the ability of an individual to make legal agreements or perform an act on their own behalf.

Convertible Bond

A type of bond that can be converted into a predetermined number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.

Unsecured Bond

A type of bond that is not backed by collateral, relying solely on the issuer's creditworthiness.