Whitestone Remodeling,Inc $\begin{array}{lll} & \mathrm{Dr.}& \mathrm{Cr.}\\\text {Accounts Payable } & 600 & \\\text { Supplies } & &600\\\end{array}$

question 58

Multiple Choice

Whitestone Remodeling,Inc.journalized a $600 repair to the Supplies account in error.Which of the following is the correcting entry to be made?

• A)
• \(\begin{array}{lll}
• & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Accounts Payable } & 600 & \\
• \text { Supplies } & &600\\
• \end{array}\)
• B)
• \(\begin{array}{lll}
• & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Repair Expense } & 600 & \\
• \text { Cash } & &600\\
• \end{array}\)
• C)
• \(\begin{array}{lll}
• & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Repair Expense } & 600 & \\
• \text { Supplies } & &600\\
• \end{array}\)
• D)
• \(\begin{array}{lll}
• & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Supplies } & 600 & \\
• \text { Repair Expense } & &600\\
• \end{array}\)
• E)
• \(\begin{array}{lll}
• & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text {Cash} & 600 & \\
• \text { Accounts Payable } & &600\\
• \end{array}\)

---

Definitions:

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.

Dividend Expense

Typically, this is a misnomer as dividends are not expensed but are distributions of earnings to shareholders from the retained earnings of a company.

Financial Statements

Reports generated by a business to showcase its financial performance, position, and cash flows, typically including the balance sheet, income statement, and statement of cash flows.