Use This Information Pertaining to the Alvino Corporation to Answer $\$ 200$

question 176

Multiple Choice

Use this information pertaining to the Alvino Corporation to answer the following question.
1. The corporation's Store Supplies account showed a beginning debit balance of $\$ 200$ and supplies purchased of $\$ 800$ . There were $\$ 300$ of supplies on hand at year end.
2. Depreciation on a building is estimated to be $\$ 5,000$ .
3. A one-year insurance policy was purchased for $\$ 2,000$ . Three months have passed since the purchase.
4. Acciued interest on a note receivable amounted to $\$ 100$ .
5. The company received a $\$ 3,600$ advance payment during the year on services to be performed. By the end of the year, one-fourth of the services had been performed.

The adjusting entry for Store Supplies would be

• A)
• \(\begin{array}{llr}
• \text {Store Supplies Expense } &700\\
• \text {Store Supplies } &&700\\
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Store Supplies Expense } &800\\
• \text { Store Supplies } &&800\\
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Store Supplies } &700\\
• \text { Store Supplies Expense} &&700\\
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Store Supplies Expense} &300\\
• \text { Store Supplies} &&300\\
• \end{array}\)

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Definitions:

Leveraged Buyout

A financial transaction where a company is purchased primarily with borrowed money, using the company's own assets as collateral for the loan.

Institutional Investors

Organizations such as pension funds, insurance companies, and mutual funds that invest significant amounts of money into various financial instruments.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, with terms for repayments with interest.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option.