Question

At the beginning of the​ year, office supplies of $ 900 were on hand. During the​ year, Tempo Air Conditioning Service paid $ 1 comma 000 for more office supplies. At the end of the​ year, Tempo has $ 600 of office supplies on hand.

Read the requirements

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.Requirement 1. Record the adjusting entry assuming that

TempoTempo

records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense​ T-accounts. Make sure to include the beginning balance and purchase of office supplies in the Office Supplies​ T-account.Begin by recording the adjusting entry assuming that

TempoTempo

records office supplies by initially debiting an asset account. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal​ entry.)

Date			Accounts and Explanation	Debit	Credit
			Supplies Expense	1500
			Office Supplies

Now post the adjusting entry to the Office Supplies and Supplies Expense​ T-accounts.

Enter the beginning balances on the first line of each account. Use a

​"Jan.Jan.

​1" reference to show the beginning balance. Make sure to include the purchase of office supplies in the Office Supplies​ T-account, then post the adjusting entry. Use a​ "Bal." reference to show the ending balance of each account. ​(For accounts with a​ $0 unadjusted​ balance, make sure to enter​ "0" on the normal side of the​ accounts.)

Office Supplies

Supplies Expense

Requirement 2. Record the adjusting entry assuming that

TempoTempo

records the purchase of office supplies by initially debiting an expense account. Post the adjusting entry to the Office Supplies and Supplies Expense​ T-accounts. Make sure to include the beginning balance in the Office Supplies​ T-account, and the purchase of office supplies in the Supplies Expense​ T-account.Begin by recording the adjusting entry assuming that

TempoTempo

records office supplies by initially debiting an expense account. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal​ entry.)

Date			Accounts and Explanation	Debit	Credit

Now post the adjusting entry to the Office Supplies and Supplies Expense​ T-accounts. Make sure to include the beginning balance in the Office Supplies​ T-account, and the purchase of office supplies in the Supplies Expense​ T-account.

Enter the beginning balances on the first line of each account. Use a

​"Jan.Jan.

​1" reference to show the beginning balance. Make sure to include the purchase of office supplies in the Office Supplies​ T-account, then post the adjusting entry. Use a​ "Bal." reference to show the ending balance of each account. ​(For accounts with a​ $0 unadjusted​ balance, make sure to enter​ "0" on the normal side of the​ accounts.)

Office Supplies

Supplies Expense

Requirement 3. Compare the ending balances of the​ T-accounts under both approaches. Are they the​ same?

The ending balances in the Office Supplies account and the Supplies Expense account are

▼

different,

the same,

  

▼

depending on

regardless of

which of the two approaches is used.

Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

1	Adjusting entry:
	Date	Accounts and explanation					Debit	Credit
	XXX	Supplies expense				(Note:1)	1300
		Office supplies						1300
		(Supplies used)
		Office supplies					Supplies expense
	Bal.	900	Adj.	1300		Bal.	0
	Purchase	1000				Adj.	1300
		1900		1300			1300		0
	Bal.	600				Bal.	1300
	Note:1
	Supplies used:
					$
	Supplies beginning balance				900
	Add: Purchases				1000
					1900
	Less: supplies ending balance				600
	Supplies used				1300
2	Adjusting entry:
	Date	Accounts and explanation					Debit	Credit
	XXX	Supplies expense				(Note:2)	300
		Office supplies						300
		(Supplies used)
		Office supplies					Supplies expense
	Bal.	900	Adj.	300		Bal.	0
		900		300		Purchase	1000
	Bal.	600				Adj.	300
							1300		0
						Bal.	1300
	Note:2
	Supplies at the end of year=$ 900
	This should be the balance in office supplies
	Current balance=$ 900
	Credit to be made=900-600=$ 300
3	The ending balance in office supplies account and the supplies expense accounts are the same regardless of which of the two approaches is used
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