Monty Corp.'s trial balance at December 31 shows Supplies $5,700 and Supplies Expense $0. On December 31, there are $2,600 of supplies on hand. Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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Business

Remington Fletcher

22 August, 01:11

Monty Corp.'s trial balance at December 31 shows Supplies $5,700 and Supplies Expense $0. On December 31, there are $2,600 of supplies on hand. Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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Justin Mooney · Answer 1

The adjusting entry is shown below:

On December 31

Supplies expense A/c Dr $3,100

To supplies A/c $3,100

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies balance - supplies on hand

= $5,700 - $2,600

= $3,100

Now the T - accounts are as follows

Supplies

Beginning balance $5,700 Supplies Expense $3,100

Ending balance $2,600

Supplies expense

Supplies $3,100

Ending balance $3,100