Question

On December 31, the trial balance indicates that the supplies account has a balance, prior to the adjusting entry, of $269. A physical count of the supplies inventory shows that $102 of supplies remain. Analyze this adjustment for supplies using T accounts, and then formally enter this adjustment in the general journal.

Answer 1

Balance Sheet

Supplies

Beg. Bal. $269 | Adj. $167

Bal. $102

Income Statement

Supplies Expense

Adj. $167 |

Date Account Title Debit Credit

Dec 31 Supplies Expense $167

Supplies $167

(To record Supplies used)