Question

What is the adjusting journal entry for the following: Supplies at the beginning of the current year had a balance of $300. Supplies valued at $4200 were purchased throughout the year. The current balance in the account is $200. In the Unadjusted trial balance the Supplies balance is $4500. What would the t-account adjustment look like?

Answer 1

WORKING NOTES:
	CALCULATION OF SUPPLIES USED IN BUSINESS
	Opening balance of Supplies	$                        300
	Add: Supplies Purchases	$                     4,200
	Total available for expenses	$                     4,500
	Less: Supplies at the end of period	$                        200
	Supplies consumed during the period	$                     4,300
SOLUTION:
Journal Entries
Date	Account Title and explanation	Debit	Credit
	Supplies Expenses	$                     4,300
--------	Supplies		$                       4,300
	(Record the supplies expenses of the period)