1. A company started the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 and recorded them as increase to the supplies asset. At the end of the year the company determined that only $300 of supplies are still on hand. What is the adjusting journal entry to be made at the end of the period?

Debit Supplies Expense and credit Supplies for $2,000

Debit Supplies and credit Supplies Expense for $300

Debit Supplies Expense and credit Supplies for $1,200

Debit Supplies and credit Supplies Expense for $1,000

2. You are given the following probability distribution for a stock:

Pr.       Outcome            

.4            -4%

.6            12%

A. Compute the expected return

B. Compute the standard deviation

C. Presuming the stock returns are normally distributed, what do these results indicate?