Question

Required information The following information applies to the questions displayed below.) Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (0) Chase provided $21,900 of services on account, and (2) he purchased $6,300 of supplies on account. There were $1,100 of supplies on hand as of December 31, Year 1. Required a, b, & e. Record the two transactions in the accounts. Record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. Post the entries in the T-accounts and prepare a post.closing trial balance. (Select "a1, a2, or b" for the transactions in the order they take place. Select "cl" for closing entries. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Accounts Receivable Beg. Bal. Beg. Bal. End. Bal 0 End. Bal.

Answer 1

Adjusting Entry:

	Date	Account title and Explanation	Debit	Credit
Adj.1	Dec 31, Year 1	Supplies expense [6,300-1,100]	$5,200
		Supplies		$5,200
		[To record supplies expense]

Closing Entries:

	Date	Account title and Explanation	Debit	Credit
Adj.1	Dec 31, Year 1	Supplies expense [6,300-1,100]	$5,200
		Supplies		$5,200
		[To record supplies expense]
	Date	Account title and Explanation	Debit	Credit
Cl.1	Dec 31, Year 1	Service revenue	$21,900
		Income summary		$21,900
		[To close revenue accounts]
Cl.2	Dec 31, Year 1	Income Summary	$5,200
		Supplies expense		$5,200
		[To close expenses accounts]
Cl.2	Dec 31, Year 1	Income summary [21,900-5,200]	$16,700
		Retained earnings		$16,700
		[To close income summary account]

T-Accounts:

Accounts receivable					Supplies
Beg. Bal.	$0				Beg. Bal.	$0
(1)	$21,900				(2)	$6,300	$5,200	Adj. 1
End. Bal.	$21,900				End. Bal.	$1,100
Accounts payable					Retained earnings
Beg. Bal.		$0			Beg. Bal.		$0
		$6,300	(2)				$16,700	Cl.3
End. Bal.		$6,300			End. Bal.		$16,700
Service revenue					Supplies expense
Beg. Bal.		$0			Beg. Bal.		$0
Cl.1	$21,900	$21,900	(1)		Adj. 1	$5,200	$5,200	Cl.2
End. Bal.		$0			End. Bal.	$0
Income summary
Beg. Bal.		$0
Cl.2	$5,200	$21,900	Cl.1
Cl.3	$16,700
End. Bal.		$0

Post-closing Trial balance:

Post-Closing Trial balance
For the year ended Dec 31, Year 1
Account title	Debit	Credit
Accounts receivable	$21,900
Supplies	$1,100
Accounts payable		$6,300
Retained earnings		$16,700
Total	$23,000	$23,000