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Question 4 3p Adjusting entries are made after the preparation of financial statements. O True False
Actual supplies on hand as of December 31st are $350. Balance in the supplies account is $1,000. What is the adjusting journa
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Answer #1

4.

Adjusting entries are made after the preparation of financial statements.

The given statement is false.

Adjusting entries are made before the preparation of financial statements. Only after making the adjusting entries, financial statements will reflect a true picture of business.

Part 2

Unadjusted supplies = $1,000

Ending supplies = $350

Supplies expense= Unadjusted supplies- Ending supplies

= 1,000-350

= $650

The following adjusting journal entry is needed:

General Journal Debit Credit
Supplies expense $650
Supplies $650

Third option is correct.

Kindly comment if you need further assistance. Thanks

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