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  • 3-4-Supplies Calculations and Entries

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    Raymond Barbosa
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    Ace Company began the year with $15,000 of supplies on hand. During the year, Ace purchased an additional $60,000 of supplies. An imaginary count of supplies on hand at the end of the year revealed $20,000 remaining. An adjusting journal entry was made on December 31 to increase supplies expense by $55,000 and decrease supplies by $55,000 to properly reflect the supplies used during the year.

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    3-4-Supplies calculations and entries.xlsx

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    Ace Company began the year with $15,000 of supplies on hand. During the year, Ace purchased an additional $60,000 of supplies. An imaginary count of supplies on hand at the end of the year revealed $20,000 remaining. An adjusting journal entry was made on December 31 to increase supplies expense by $55,000 and decrease supplies by $55,000 to properly reflect the supplies used during the year.

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    6 views2 pages

    3-4-Supplies Calculations and Entries

    Uploaded by

    Raymond Barbosa
    Ace Company began the year with $15,000 of supplies on hand. During the year, Ace purchased an additional $60,000 of supplies. An imaginary count of supplies on hand at the end of the year revealed $20,000 remaining. An adjusting journal entry was made on December 31 to increase supplies expense by $55,000 and decrease supplies by $55,000 to properly reflect the supplies used during the year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 2

    I-17.

    03

    Ace Company began the year with $15,000 of supplies on hand. During the year, Ace
    purchased an additional $60,000 of supplies, recorded as shown in the journal entry
    below.

    Imagine that you counted ending supplies inventory on hand at the end of the year.
    Indicate, in the appropriate boxed area, the dollar amount of ending inventory that
    your imaginary county revealed (any number you choose, from $0 to $75,000).

    Next, select the correct account titles to be debited and credited from the pick list within
    the adjusting journal entry, and supply the correct amount for the entry. Correct
    debit/credit selections and will turn the journal entry cells green!

    JOURNAL ENTRIES DURING THE YEAR:


    Date Accounts Debit Credit
    Various Supplies 60,000

    Cash 60,000

    To record purchase of supplies

    Indicate the dollar value of supplies on hand at the end of the year: $ 20,000

    ADJUSTING JOURNAL ENTRY FOR SUPPLIES:


    Date Accounts Debit Credit
    12/31 Supplies Expense 55,000

    Supplies 55,000

    Adjusting entry to reflect supplies used


    I-17.03

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