Question

1. Record the adjusting entry assuming that Derby 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 Derby 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? Print Done

Answer 1

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N4 A B С D E F G G H 1 J K L м. N 1 2 1200 3 Beginning supplies Air conditioning service Closing supplies 5000 4 800 5 6 Requirement: 1 Date 7 Dec. 31 Accounts title and Explanation Debit Credit Suppliies Expense 5400 Office Supplies 8 5400 9 10 Office Supplies Supplies Expense Office Supplies 5400 11 1-Jan 5400 Supplies Expense 12 Purchase 1200 50001 800 13 Bal. Bal 5400 14 15 16 Requirement: 2 Date 17 Dec. 31 Accounts title and Explanation Debit Credit Suppliies Expense 400 Office Supplies 18 400 19 20 Office Supplies Supplies Expense Office Supplies 400 1-Jan 12001 400 Supplies Expense 21 22 23 Bal. 8001 Bal 400 24 25 Requirement: 3 The ending balances in the Office Supplies account and the Supplies Expense account are the same) (regardless of) which of the two approaches is used 26 Sheet179 Sheet180 Sheet181 Sheet182 Sheet183 Sheet184 Sheet185 Stats Ready BO 100%

For calculation ref:

A B с D E F G H 1 K L M N 1 2 3 4 Beginning supplies 1200 Air conditioning service 5000 Closing supplies 800 5 6 Requirement: 1 Date Credit Dec. 31 7 8 Accounts title and Explanation Debit Suppliies Expense =E3+E2-E4 Office Supplies =F7 9 10 Office Supplies Supplies Expense Office Supplies =F11 11 =E11+E12-E13 Supplies Expense 143831 Purchase Bal. =E2 =E3 12 13 1=E4 Bal =K11 14 15 16 Requirement: 2 Date Credit 17 Dec. 31 Accounts title and Explanation Debit Suppliies Expense =E2-E4 Office Supplies 18 =F17 19 20 Office Supplies Supplies Expense Office Supplies =F21 21 43831 1=E2 =E21+E22-E23 Supplies Expense 22 23 Bal. =E4 Bal =K21 24 25 Requirement: 3 The ending balances in the Office Supplies account and the Supplies Expense account are the same) (regardless of) which of the two approaches is used 26 KM Sheet179 Sheet180 Sheet181 Sheet182 Sheet183 Sheet184 Sheet185 Sheet185 Stats