Question

QS 3-6 Prepaid (deferred) expenses adjustments P1 For each separate case below, follow the three-step process for adjusting the supplies asset account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine wha current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step to step 2. Assume no other adjusting entries are made during the year. a. Supplies. The Supplies account has a $300 debit balance to start the year. No supplies were purchase t the 1 during the current year. A December 31 physical count shows $110 of supplies remaining. b. Supplies. The Supplies account has an $800 debit balance to start the year. Supplies of $2,100 were ount purchased during the current year and debited to the Supplies account. A December 31 physical c shows $650 of supplies remaining c. Supplies. The Supplies account has a $4.000 debit balance to start the year. During the current year supplies of $9,400 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2,660.

Answer 1