Chapter 3: Adjusting Entries for Supplies Account and Unearned Revenue Account (Fee earned meaning Revenue) Q3-1. Western Company had $500 of store supplies available at the beginning of the current year. During the year Western Company purchased $2,750 worth of store supplies. On December 31 of this year $375 worth of store supplies remained. a. Calculate the amount of Western Company's store supplies expense for the current year. (Show your calculations.) b. Prepare the journal entry to adjust the supplies account. [Hint: Draw Supplies T-account first and enter the numbers on the T-account. You can calculate how much supplies were used during the year. Supplies remained meaning the ending balance of Supplies account.) Q3-2. During the current year ended December 31, clients paid fees in advance for accounting services amounting to $25,000. These fees were recorded in an account called Unearned Accounting Fees. If $3,500 of these fees remain unearned on December 31 of this year present the December 31 adjusting entry to bring the accounts up to date. [Hint: If clients paid fees in advance, what account do you need to record?]