E3-34B. (Learning Objectives 2, 3: Applying the revenue recognition principles; allocating supplies cost between the asset and the expense) Mega Minds, Inc., experienced four situations for its supplies. Compute the amounts that have been left blank for each situation.

For situations 1 and 2, journalize the needed transaction. Consider each situation separately.

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Beginning supplies.. Payments for supplies during the year. Total amount to account for. Ending supplies. Supplies expense.. Situation 1 2 3 4 $ 100 $ 600 $1,100 $ 700 2 1,000 600 1,600 ? 2 1,300 (400) (200) (800) ? $1,200 $ P $1,000 $ 800