Question

red The unadjusted trial balance of XY Ltd shows a $2,200 balance for the office supplies account. At the end of the period, the office manager determines that the value of supplies on hand is $800. Which of the following is the required adjusting entry? on Select one: A. Supplies Expense Supplies Payable 800 800 B. Supplies Expense Office Supplies 1,400 1,400 800 Supplies Expense Office Supplies 800 D Supplies Expense Supplies Payable 1,400 1,400

Answer 1

Answer :-

Q1 -

The Correct Answer is Option B -

Supplies Expense	$1,400
Office Supplies		$1,400

Explanation -

In Unadjusted Trial balance , Office Supplies = $2,200

At end of period , Supplies on hand = $800

Supplies Used = $2,200 - $800

Supplies Used = $1,400

Adjusting entries -

Supplies Expense	$1,400
Office Supplies		$1,400

Q2 -

The Correct Answer is Option B -

Account Payable	$750
Cash		$750

Explanation -

When business purchased office supplies on account the journal entries is -

Office Supplies	$750
Account Payable		$750

When business makes a cash payment of​ $750 to the supplier to settle the​ account , then Journal entries is -

Account Payable	$750
Cash		$750