In Its First Period of Operations, Wallowa Company Purchased Supplies

question 43

Multiple Choice

In its first period of operations, Wallowa Company purchased supplies costing $6,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,800 still on hand. The adjusting journal entry to be made at the end of the period would be

• A) Debit Supplies Expense, $1,800; Credit Supplies, $1,800.
• B) Debit Supplies, $4,200; Credit Supplies Expense, $4,200.
• C) Debit Supplies Expense, $4,200; Credit Supplies, $4,200.
• D) Debit Supplies, $1,800; Credit Supplies Expense, $1,800.

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Definitions:

Central Nervous System

Comprises the brain and spinal cord; the primary information processing center for coordinating bodily functions and responses.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain, down the back, and transmits nerve signals between the brain and the body.

Brain

A complex organ of the central nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognitive abilities such as thought and emotion.

Neuron

A specialized cell of the nervous system responsible for transmitting information throughout the body in the form of electrical and chemical signals.