What is adjusting entry?

Need help with adjusting entry for my accounting class!!?

• I am taking an accounting 1 class online and i am haven an issue with two questions... if you know how the answer or how to help me please do. here are the two questions.. thanks in advance for your help! 1.) If a company records prepayment of expenses in an asset account, the adjusting entry would: A. Result in a debit to an expense and a credit to an asset account B. cause an adjustment to prior expense to be overstated and assets to be understated C. Result in a debit to a liability account to exist D. Decrease cash 2.) Prior to recording adjusting entries, th Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is: A. Debit Office supplies $105 and credit Office Supplies Expense $105 B. Debit Office Supplies Expense $105 and credit office Supplies $105 C. Debit Office Supplies Expense $254 and credit office Supplies $254 D. Debit Office supplies $105 and credit Supplies Expense $254

• Answer:

  Answer: 1. A. Result in a debit to an expense and a credit to an asset account 2. C. Debit Office Supplies Expense $254 and credit office Supplies $254 Office Supplies was recorded using the Asset method. Hence, to reflect the correct balance, you have debit Office Supplies Expense by $254 and credit Office Supplies by $254. After the entry, the Office Supplies balance will be brought to its correct amount which is $105 ($359 - $254).