Final answer:
The student's question is about preparing an adjusting entry for supplies on hand at the end of the fiscal year. An adjusting entry for supplies usually debits 'Supplies Expense' and credits 'Supplies' account by the amount of supplies used. However, the exact entry requires knowing the initial supplies balance or the purchases made during the year.
Step-by-step explanation:
The question relates to preparing an adjusting entry for the supplies on hand at the end of the fiscal year for a business, in this case, December 31, 2024. The purpose of the adjusting entry is to accurately reflect the value of the supplies that have not yet been consumed and update the financial records accordingly. An adjusting entry for supplies typically involves two accounts: 'Supplies Expense' and 'Supplies'. At the end of the accounting period, you would debit 'Supplies Expense' for the amount of supplies used during the period, and credit 'Supplies' to reflect the decrease in the value of supplies on hand.
The entry would look like this:
- Debit: Supplies Expense (for the amount used during the period)
- Credit: Supplies (by the same amount)
However, to provide the exact journal entry, it would be necessary to know the initial balance of supplies before adjusting. Since we only have the amount of supplies on hand at December 31, 2024 ($890), we cannot determine the actual expense without additional information on the supplies at the beginning of the period or the purchases during the year.