Question

The trial balance for Swifty Corporation appears as follows:

Swifty Corporation
Trial Balance
December 31, 2017
Cash $250
Accounts Receivable 428
Prepaid Insurance 67
Supplies 148
Equipment 3280
Accumulated Depreciation, Equipment $490
Accounts Payable 315
Common Stock 980
Retained Earnings 1150
Service Revenue 2468
Salaries and Wages Expense 820
Rent Expense 410 0
$5403 $5403

If, on December 31, 2017, supplies on hand were $33, the adjusting entry would contain a:

Answer 1

Step-by-step explanation:

The adjusting entry for supplies is shown below:

Supplies expense A/c Dr $115

To supplies A/c $115

(Being adjusted entry recorded)

The trial balance show a supplies balance of $148 and the supplies on hand were $33, so the adjusted supply balance would be equal to

= Supplies balance - supplies on hand

= $148 - $33

= $115