Author Question: Sunny Day Company has 740 of supplies reported on its unadjusted trial balance as of July 31 . ... (Read 89 times)

burton19126 · **on:** Jul 6, 2018

Sunny Day Company has 740 of supplies reported on its unadjusted trial balance as of July 31 . During the month of July Sunny Day Company used 325 worth of supplies. That is the entry to adjust supplies?
a. Supplies Expense 325
Cash 325
b. Supplies 415
Supplies Expense 415
c. Supplies Expense 415
Supplies 415
d. Supplies Expense 325
Supplies 325

Question 2

Which of the following situations will result in the investment value of a business approximating to the fair market value of the business?

A) when an investor's requirements and expectations are different than the fair value of the business
B) when an investor's requirements and expectations are representative of the book value of the business
C) when an investor's requirements and expectations are different than the market
D) when an investor's requirements and expectations are representative of the market

nmyers · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

D

Answer to Question 2

D
Explanation: D) If an investor's requirements and expectations are representative of the market, investment value will approximate fair market value.