Use This Information to Answer the Following Question If on December 31,2010,supplies on Hand Were $20,the Adjusting Entry

question 145

Multiple Choice

Use this information to answer the following question.
The trial balance for Tsung Corporation appears as follows:
$\begin{array}{c}\text {Tsung Corporation}\\\text {Trial Balance}\\\text {December 31, 2010}\\\begin{array}{|l|r|r|}\hline \text { Cash } & \$ 200 \\\text { Accounts Receivable } & 500 \\\text { Prepaid Insurance } & 50 \\\text { Supplies } & 150 \\\text { Office Equipment } & 400\\\text { Accumulated Depreciation-Office Equipment } & & \$ 200 \\\text { Accounts Payable } & & 300 \\\text { Common Stock } & & 600 \\\text { Service Revenue Earned } &&500 \\\text { Salaries Expense } & 100 \\\text { Rent Expense } &200 \\& \$ 1.600 & \$ 1.600\\\hline\end{array}\end{array}$
If on December 31,2010,supplies on hand were $20,the adjusting entry would contain a

• A) credit to Supplies for $20.
• B) credit to Supplies Expense for $130.
• C) debit to Supplies Expense for $130.
• D) debit to Supplies for $20.

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Definitions:

Balance on Goods

Balance on goods refers to the difference between a country's exports and imports of physical products, excluding services.

Services Surplus

Services Surplus describes a situation where the value of exported services of a country exceeds the value of its imported services, contributing positively to its trade balance.

Capital and Financial Account

Refers to parts of the balance of payments where capital transfers, investments, and financial derivatives are recorded.

Money Inflows

Financial resources entering a particular entity, such as a business or country, over a period of time.