Question
E3: Chapter 3 Adjusting Accounts & Preparing Financial Statements (10 Points) An entry to record the purchase of $1,000 of supplies on September 1 has
E3: Chapter 3 Adjusting Accounts & Preparing Financial Statements (10 Points)
An entry to record the purchase of $1,000 of supplies on September 1 has been journalized and the relevant amount posted to the Supplies account. A physical count of the supplies-on-hand at the end of September showed $400 of supplies. Prepare and post the required adjusting entry needed to bring the balance in the supplies account to the proper amount. Remember to use the Date and PR columns in both the journal and the ledger.
General Journal
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2016 | Account Titles and Explanation | PR | Debit | Credit |
9/01 | Supplies | 120 | 1,000 |
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| Cash | 100 |
| 1,000 |
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| ADJUSTING ENTRIES |
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General Ledger
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| SUPPLIES |
| Account | No. 120 |
Date |
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2016 | Explanation | PR | Debit | Credit | Balance |
9/01 |
| G1 | 1,000 |
| 1,000 |
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| SUPPLIES | EXPENSE | Account | No. 620 |
Date |
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2016 | Explanation | PR | Debit | Credit | Balance |
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