1.Pleymeyer Realty generates revenue through its  many rental properties.  As of August 31, the 

company has not collected $6,000 of August rental payments because of delinquencies.  The 

monthly adjusting journal entry at August 31 

a.  is not required until the past due rent payments are collected 

b.  will include a debit to Cash and a credit to Rent Revenue of $6,000. 

c.  will include a debit to Unearned Rent and a credit to Rent Revenue for $200. 

d.  will include a debit to Rent Receivable and a credit to Rent Revenue for $6,000. 

 

2.  At March 1, 2006, Striped Candy Delights Inc. had supplies on hand of $500.  During the 

month, Candy purchased supplies of $1,200 and used supplies of $1,500.  The March 31 

adjusting journal entry should include: 

a.  a debit to the supplies account for $1,500 

b.  a credit to the supplies account for $500 

c.  a debit to the supplies account for $1,200 

d.  a credit to the supplies account for $1,500 

 

3.  Quirk-Wit Company purchased office supplies  costing $4,000 and debited Office Supplies for 

the full amount. At the end of the accounting period, a physical count of office supplies revealed 

$1,600 still on hand. The appropriate adjusting journal entry to be made at the end of the period 

would be 

a. Debit Office Supplies Expense, $1,600; Credit Office Supplies, $1,600. 

b. Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400. 

c. Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400. 

d. Debit Office Supplies, $1,600; Credit Office Supplies Expense, $1,600.

 

 

4.  Silver  Fleet  Services  Company  purchased equipment for $5,000 on January 1, 2006.  The 

company expects to use the equipment for 5 years.  It has no salvage value.  What balance 

would be reported on the December 21, 2006 balance sheet for Accumulated Depreciation? 

a.  $0 because Accumulated Depreciation is reported on the Income Statement 

b. $1,000 

c. $4,000 

d. $5,000 

 

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