3. Adjusting journal entries: Supplies Aa Aa The balance in Franklin Agency's Supplies account on December 31, before year-end adjustments, is $5,018. A physical count of supplies, however, reveals that the amount of supplies used during the year was $4,226. Prepare the December 31 adjusting journal entry for Franklin Agency. JOURNAL Post. Ref. Date Description Debit Credit 1 Dec 31 Not sure about the account title? Click here to view the chart of accounts. Enter the impact of the adjusting journal on the accounting equation. Use Smart Entry when selection lists are not available Accounting Equation Impact Assets Liabilities Owner's Equity