Cash 25,000
Accounts Payable 14,000
Accounts receivable 27,000
Notes payable due within one year 24,000
Merchandise Inventory 24,000
Land 40,000
Notes Payable Due Beyond one year 120,000
Equipment 33,000
Buildings 80,000
Accumulated Depreciation 12,000


What is the current ratio?

A .52 to 1

B 1.61 to 1

C 1.91 to 1

D 2 to 1

M Corp had $1800 of supplies on hand and January 1, 20X7, supplies with a cost of $7000 were purchased. At December 31, 20X7, he actual supplies on hand amounts of $2300. After the adjustments are recorded and posted at December 31, 20X7 the balances in the Supplies and Supplies Expense accounts will be

A. Supplies, $900, Supplies Expense, $4100

B. Supplies, $2300, Supplies Expense, $6500

C. Supplies, $2300; Supplies Expense, $4700

D. Supplies, $4000, Supplies Expense, $2300

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The amount in your supplies account is given to you. It is the actual ending inventory at the end of the accounting period.

For the Supplies Expense account you will need to compute it. This is the amount used, therefore you need to add your beginning inventory and your purchases, then deduct your ending inventory to calculate your expense amount. This is known as Cost of Goods Sold (GOGS).