26. If the adjustment for Supplies used during the period was not made: a. expen

Question

26. If the adjustment for Supplies used during the period was not made: a. expenses would be too low b. assets would be too low c. expenses would be too high d. revenue would be too high 27. After the adjustment for depreciation has been made, the original cost of the equipment: a. increases with a credit b. decreases with a debit c. remains the same d. None of the above. 28. The adjustment that is made to allocate the cost of a building over its expected life is called: a. depreciation b. residual value c. accumulated depreciation d. None of the above. 29. Logan's Snowboards estimated depreciation for office equipment at $250. The adjusting entry to record the depreciation would include a: a. debit to Accumulated Depreciation for $250 b. credit to Depreciation Expense for $250 c. credit to Accumulated Depreciation for $250 d. credit to Office Equipment for $250 30. When making the adjustment for prepaid insurance, instead of writing off only the time that has passed the entire policy was written off. This would: a. overstate the assets b. overstate the liabilities c. understate net income d. None of the above.

Explanation / Answer

26)

Adjustment for supplies = Supplies inventory at the begging of the reporting – Supplies inventory at the ending of the reporting period.

Any adjustment for supplies charges to income statement as supplies expense. If the supplies adjustment is not recorded, expenses will be understated.

Hence, correct option is “a”

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