Question

Required information Exercise 13-10A Recording supplies and identifying their effect on financial statements LO 13-1, 13-3, 13-4 The following information applies to the questions displayed below) Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $18,400 of services on account, and (2) he purchased $4,400 of supplies on account. There were $900 of supplies on hand as of December 31, Year 1 Exercise 13-10A Part a, b, and e Required a. b. & e. Record the two transactions in the accounts. Record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. Post the entries in the T-accounts and prepare a post-closing trial balance. (Select "a1, a 2, or b" for the transactions in the order they take place. Select "cl" for closing entries. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Accounts Receivable Supplies Beg Bal Beg Bal

Answer 1

Date A/C Name Debit Credit S S 18,400,0 A1 10,400 Accounts Recivable Service Revenue (Provide service on account) Supplies Accounts Payable [Purchase of supplies on account) A2 4,100 81 Dr Cr Dr. Cr Dale Accounts receivable Amount Dale 18,400.0 Particulars Amount Dale Particulars Service Revenue Supplies Amount 4,400.0 Particulars Accounts Payable Dale Amount Particulars Supplies Expenses 3,500 Closing Balance 18,400.0 Closing Balance 9000 Dr Dr Accounts Payable Amount Date Dato Particulars Data Particulars Amount Particulars Supplies pate Hetained Earnings Particulars 31st dec Income summary Amount 4,400.0 Amount 14,900.0 Closing Balance 4,400.0 Closing Balance 14,900.0 Dr Cr Dr Dale Service Revenue Amount Dale 18,400 Date Particulars Income Summary Amount Particulars Accounts Recei Amount 19,400.0 Supplies Expenses Amount Date 3,300.0 Particulars supplies Particulars Income summary 3,500 Closing Balance Closing Balance Non Adjusted Trial Balance Supplies Accounts recer Accounts Payable Service Revenue 4,400.00 19,400.00 4,400.00 18,400.00 22,800.00 22,800.00 R2 Adjustment Entry Date A/C Name Debit $ 3,500.0 Credit $ 21st dec 3,500.0 Supplies Expense Suppies [inventory of 900) Supplies Expense(4400-900) CI Closing Entries Date A/C Name Debit $ Credit $ 3,500.0 21st dec Supplies Expense Income Summary Closure of expensel 3,500.0 Bist dec 18,400 10.400.0 Service Revenue Income Summary [Closure of revenue) Income Summary Retained earning Closure of income summaryll 21st des 14,900.0 14,900.0