Question

a. The Supplies account has a $600 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $260 of supplies remaining. Supplies Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. b. The Supplies account has an $1,550 debit balance to start the year. Supplies of $3,600 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $1,025 of supplies remaining. Supplies Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31, adjusting entry to get from step 1 to step 2.

Answer 1

a
			Supplies
Step 1: Current account balance equals	600	Debit	600
				340
Step 2: Current account balance should equal	260	Debit	260
Step 3:
Supplies expense	340
Supplies		340
b
			Supplies
Step 1: Current account balance equals	5150	Debit	5150
				4125
Step 2: Current account balance should equal	1025	Debit	1025
Step 3:
Supplies expense	4125
Supplies		4125
c
			Supplies
Step 1: Current account balance equals	17900	Debit	17900
				14340
Step 2: Current account balance should equal	3560	Debit	3560
Step 3:
Supplies expense	14340
Supplies		14340