Adjustment for Prepaid Expense The supplies account had a beginning balance of $3,375 and was debited for $6,450 for supplies purchased during the year Journalize the adjusting entry required at the end of the year, assuming the amount of supplies on hand is $2,980. Which of the following statements is not true about liabilities? a. Liabilities do not include wages owed to employees of the company. b. Cash received before a service is performed creates a liability. C. Account titles of liabilities often include the term "payable." Od. Liabilities are debts owed to outsiders