86 SOLID FOOTING Chapter 7 - Adjusting Entries Price per Problem 7-3 Purchasing Supplies and the Monthly Supplies Adjusting Entry On July 1, 2021, Martha Jones started Martha's Auto Repair Shop, Inc. On that same day, Martha purchased the following supplies for use in the repair shop: Item Unit of Quantity Extended Measure Purchased Unit Total Cost Shop Towels Rolls 120 $4 $480 Degreasing Fluid Quarts 75 $9 $675 Gasket Sealer Tubes 40 $6 $240 Total $1,395 On July 1, Martha paid cash for the supplies and set the accounting policy that all supplies would initially be recorded in the Supplies asset account. At the end of July, Martha counted the supplies that were left and prepared the following listing: Unit of Item Quantity Measure Remaining Shop Towels Rolls 80 Degreasing Fluid Quarts 65 Gasket Sealer Tubes 32 At the end of August, Martha counted the supplies that were left and prepared the following listing: Unit of Quantity Item Measure Romaining Shop Towels Rolls 55 Degreasing Fluid Quarts Gasket Sealer Tubes 22 48 The following is a partial list of the accounts in Martha's General Ledger. These are the only accounts you need for this problem D Cash Supplies Supplies Expense Use the forms on Tabs 7.3 A and 7-3 B in the Excel Workbook Chapter 07 - Problem 7-1 to 7-8 Forms to complete this problem Requirement 3 -- "T" Account Analysis for the July 31 adjusting entry "T" Account Analysis for Asset and Liability Accounts Account Name> Prepaid Rent Debit Credit (1) What is the current balance? (3) What adjustment is required to adjust from the current balance to the should be balance? (2) What should be the balance? Requirement 4 - July 31 Prepaid Rent adjusting entry Date Account Name Debit 7-1 7-2 A 7-21 7-3 A 7-3B 7-4 A 7-4 B 7-5 A 7-5 B 7-6 7-7 7-8 Ready Type here to search O EI 99 Credit 86 SOLID FOOTING Chapter 7 - Adjusting Entries Price per Problem 7-3 Purchasing Supplies and the Monthly Supplies Adjusting Entry On July 1, 2021, Martha Jones started Martha's Auto Repair Shop, Inc. On that same day, Martha purchased the following supplies for use in the repair shop: Item Unit of Quantity Extended Measure Purchased Unit Total Cost Shop Towels Rolls 120 $4 $480 Degreasing Fluid Quarts 75 $9 $675 Gasket Sealer Tubes 40 $6 $240 Total $1,395 On July 1, Martha paid cash for the supplies and set the accounting policy that all supplies would initially be recorded in the Supplies asset account. At the end of July, Martha counted the supplies that were left and prepared the following listing: Unit of Item Quantity Measure Remaining Shop Towels Rolls 80 Degreasing Fluid Quarts 65 Gasket Sealer Tubes 32 At the end of August, Martha counted the supplies that were left and prepared the following listing: Unit of Quantity Item Measure Romaining Shop Towels Rolls 55 Degreasing Fluid Quarts Gasket Sealer Tubes 22 48 The following is a partial list of the accounts in Martha's General Ledger. These are the only accounts you need for this problem D Cash Supplies Supplies Expense Use the forms on Tabs 7.3 A and 7-3 B in the Excel Workbook Chapter 07 - Problem 7-1 to 7-8 Forms to complete this problem Requirement 3 -- "T" Account Analysis for the July 31 adjusting entry "T" Account Analysis for Asset and Liability Accounts Account Name> Prepaid Rent Debit Credit (1) What is the current balance? (3) What adjustment is required to adjust from the current balance to the should be balance? (2) What should be the balance? Requirement 4 - July 31 Prepaid Rent adjusting entry Date Account Name Debit 7-1 7-2 A 7-21 7-3 A 7-3B 7-4 A 7-4 B 7-5 A 7-5 B 7-6 7-7 7-8 Ready Type here to search O EI 99 Credit