Answered: period is: a.) debit Supplies; credit…

period is: a.) debit Supplies; credit Stockholders' Equity b.) debit Supplies Expense; credit Supplies c.) debit Accounts Payable; credit Supplies d.) debit Stockholders' Equity; credit Supplies

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

The entry to adjust for the cost of supplies used during the accounting period is:

a.) debit Supplies; credit Stockholders' Equity

b.) debit Supplies Expense; credit Supplies

c.) debit Accounts Payable; credit Supplies

d.) debit Stockholders' Equity; credit Supplies

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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