Author Question: Supplies originally cost 600, but only 150 worth of supplies were used this period. The adjusting ... (Read 160 times)

renzo156 · **on:** Jul 5, 2018

Supplies originally cost 600, but only 150 worth of supplies were used this period. The adjusting entry would be
a. debit Supplies Expense, 150; credit Supplies, 150.
b. debit Supplies Expense, 450; credit Supplies, 450.
c. debit Supplies, 150; credit Supplies Expense, 150.
d. debit Supplies, 450; credit Supplies Expense, 450.

Question 2

A not-for-profit entity receives a donation of 100 shares of securities listed on the American Stock Exchange. As a general rule, when it prepares its statement of financial position at year-end, the entity must report the securities at:

a. their fair value at time of donation
b. their fair value at date of the statement of financial position
c. the lower of their fair value at date of donation or their fair value at date of the statement of financial position
d. the lower of the cost to the donor or the fair value at date of the statement of financial position.