For each of the following items, select the letter of the answer that best describes the end-of-period adjustment required for an item.
a.Increase asset, increase revenue
b.Decrease asset, increase expense
c.Decrease liability, increase revenue
d.Increase liability, increase expense
33.At the end of a month, employees are owed $2,300 for wages they have earned but will not receive until paid next month
34.A landlord has not yet collected the past month’s rent from a tenent.
35.The firm has plant assets on which $5,000 depreciation must be recorded.
36.On October 1, the firm received an advance payment from a customer and recorded it as a liability. One-fourth of the advance has been earned.
37.The Supplies account has a $1,200 balance. A physical count reveals that $400 of supplies are on hand.
38.Income taxes for the period have not yet been recorded.