Question

At the beginning of the year, office supplies of $900 were on hand. During the year, Rocket Air Conditioning Service paid $2,000 for more office supplies. At the end of the year, Rocket has $800 of office supplies on hand. Read the requirements. Requirement 1. Record the adjusting entry assuming that Rocket records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance and purchase of office supplies in the Office Supplies T-account. Begin by recording the adjusting entry assuming that Rocket records office supplies by initially debiting an asset account. (Record debits first, then credits. Select the explanation on the last line of the journal entry.) Date Accounts and Explanation Debit Credit Now post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Enter the beginning balances on the first line of each account. Use a "Jan. 1" reference to show the beginning balance. Make sure to include the purchase of office supplies in the Office Supplies T-account, then post the adjusting entry. Use a "Bal" reference to show the ending balance of each account. (For accounts with a $0 unadjusted balance, make sure to enter "O" on the normal side of the accounts.) Office Supplies Supplies Expense Requirement 2. Record the adjusting entry assuming that Rocket records the purchase of office supplies by initially debiting an expense account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance in the Office Supplies T-account, and the purchase of office supplies in the Supplies Expense T-account. Begin by recording the adjusting entry assuming that Rocket records office supplies by initially debiting an expense account. (Record debits first, then credits. Select the explanation on the last line of the journal entry) Date Accounts and Explanation Debit Credit Now post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance in the Office Supplies T-account, and the purchase of office supplies in the Supplies Expense T-account. Enter the beginning balances on the first line of each account. Use a "Jan. 1" reference to show the beginning balance. Make sure to include the purchase of office supplies in the Office Supplies T-account, then posi s i m u nadjusted balance, make sure to enter "O" on the normal side of the accounts.) Office Supplies Supplies Expense * Requirements - X Requirement 3. Compare the ending balances of the T-accounts under both approaches. Are they the same? 1. Record the adjusting entry assuming that Rocket records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance and purchase of office supplies in the Office Supplies T-account. 2. Record the adjusting entry assuming that Rocket records the purchase of office supplies by initially debiting an expense account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance in the Office Supplies T-account, and the purchase of office supplies in the Supplies Expense T-account. 3. Compare the ending balances of the T-accounts under both approaches. Are they the same? The ending balances in the Office Supplies account and the Supplies Expense account are which of the two approaches is used. Print Done

Answer 1

Rocket Air Conditioning Service
Journal entries
Date	Account	Debit	Credit	Calculation
Req 1
Assuming Debit Asset account for Supplies
31-Dec	Supplies expense	$        2,100		=900+2,000-800
	Supplies		$        2,100
	To record supplies expense

Credit T Accounts Date Debit Date Credit Date Debit Date Req 1 Assuming Debit Asset account for Supplies Supplies Supplies expense 1-Jan $ 900 31-Dec $ 2,100 Purchase $ 2,000 31-Dec $ 2,100 Bal. $ 800 Bal. $ 2,100

Date	Account	Debit	Credit	Calculation
Req 2
Assuming Debit Expense account for Supplies
31-Dec	Supplies expense	$           100		=900-800
	Supplies		$           100
	To record supplies expense

T Accounts Req2 Assuming Debit Expense account for Supplies Date Debit Date Credit Date Debit Date Supplies Supplies expense 1-Jan $ 900 Purchase $ 2,000 31-Dec $ 100 31-Dec $ 100 Credit Bal. $ 800 Bal. $ 2,100

Req 3
Rocket Air Conditioning Service	End Balance in Req 1			End Balance in Req 2
Account Names	Debit	Credit		Debit	Credit
Supplies	800			800
Supplies expense	2,100			2,100

Ending balance in Office Supplies & Supplies expense account are THE SAME, REGARDLESS OF which of the approaches is used