Question

Sunland Advertising Company's trial balance at December 31 shows Supplies 56,900 and Supplies Experse $0 On December 31, there are $2,800 of supplies on hand. Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually Credit Date Account Titles and Explanation Debit Dec. 31 Supplies Supplies Expense

Answer 1

Solution 1:

Journal Entries - Sunland Advertising Company
Date	Particulars	Debit	Credit
31-Dec	Supplies expense Dr	$4,100.00
	To Supplies		$4,100.00
	(to record supplies expense)

Supplies
Date	Debit	Date	Credit
Bal	$6,900.00	31-Dec	$4,100.00
Bal	$2,800.00
Supplies expense
Date	Debit	Date	Credit
31-Dec	$4,100.00
Bal	$4,100.00

Solution 2:

Journal Entries - Pharoah Company
Date	Particulars	Debit	Credit
1-Jul	Prepaid insurance Dr	$17,200.00
	To Cash		$17,200.00
	(To record insurance payment)
31-Dec	Insurance expense Dr	$2,150.00
	To Prepaid insurance		$2,150.00
	(To record insuarance expense)

Prepaid Insurance
Date	Debit	Date	Credit
1-Jul	$17,200.00	31-Dec	$2,150.00
Bal	$15,050.00
Insurance expense
Date	Debit	Date	Credit
31-Dec	$2,150.00
Bal	$2,150.00