Question

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on January 1 Ogden inc had $1500 of supplies on hand. during January, Odgen purchased $5500 worth of new supplies. at the end of the month, a count revealed $700 worth of supplies remaining on the shelves. prepare the adjusting journal entry required at the end of the month. included date ...omit explanations.

Answer 1

Given:

Opening Balance = $1500

Purchased Supplies= $5500

Closing Balance = $700

Closing Balance = Opening Balance + Purchased Supplies - Supplies used

700=1500+5500-Supplies used

Supplies used = 7000-700=$6300

Adjusting Entry

Date	Particulars	Amount($)	Amount($)
Jan 31	Supplies Expenses	6300
	Supplies		6300

Note:

The used supplies are recorded as an expenses for the period. Thus, the supplies (as an assets account) decrease whereas the used supplies (supplies expenses account) increase.