Question

Requirement 1. Compute the amounts that have been left blank for each situation. 

Requirement 2. For situations 1 and 2, journalize the needed transaction. Consider each situation separately. 

Answer 1

Situation 1:

Total amount to account for = Beginning supplies + Payments for supplies during the year
$1,150 = $500 + Payments for supplies during the year
Payments for supplies during the year = $650

Journal Entry Credit Debit Accounts Payable 650 Cash 650

Situation 2:

Total amount to account for = Beginning supplies + Payments for supplies during the year
Total amount to account for = $1,700 + $3,400
Total amount to account for = $5,100

Supplies expense = Total amount to account for - Ending supplies
Supplies expense = $5,100 - $300
Supplies expense = $4,800

Journal Entry Debit Credit Supplies Expense 4,800 Supplies 4,800

Situation 3:

Supplies expense = Total amount to account for - Ending supplies
$900 = Total amount to account for - $750
Total amount to account for = $1,650

Total amount to account for = Beginning supplies + Payments for supplies during the year
$1,650 = $650 + Payments for supplies during the year
Payments for supplies during the year = $1,000

Situation 4:

Supplies expense = Total amount to account for - Ending supplies
$1,700 = $2,900 - Ending supplies
Ending supplies = $1,200