At the beginning of the period, a company reports a balance in office supplies of $450. During the period, the company purchases an additional $3,400 of office supplies for cash. By the end of the period, only $900 of office supplies remains. Record the period-end adjusting entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Business

Genevieve Shepard

23 June, 06:32

At the beginning of the period, a company reports a balance in office supplies of $450. During the period, the company purchases an additional $3,400 of office supplies for cash. By the end of the period, only $900 of office supplies remains. Record the period-end adjusting entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Cullen · Answer 1

Before passing the journal entry, first, we have to compute the total supplies consumed. The formula to compute the total supplies consumed is shown below:

= Beginning balance of supplies + Purchase of supplies - ending balance if supplies

= $450 + $3,400 - $900

= $2,950

Now the journal entry would be

Supplies expense A/c Dr $2,950

To Supplies A/c $2,950

(Being supplies consumed recorded)