E3A-31

At the beginning of the year, office supplies of $ 1 comma 300 were on hand. During the year, Amble Air Conditioning Service paid $ 3 comma 000 for more office supplies. At the end of the year, Amble has $ 500 of office supplies on hand.

Requirement 1. Record the adjusting entry assuming that Amble records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance and purchase of office supplies in the Office Supplies T-account.

Begin by recording the adjusting entry assuming that Amble records office supplies by initially debiting an asset account. (Record debits first, then credits. Select the explanation on the last line of the journal entry.)

1. Record the adjusting entry assuming that Amble records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance and purchase of office supplies in the Office Supplies T-account.

2. Record the adjusting entry assuming that Amble records the purchase of office supplies by initially debiting an expense account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance in the Office Supplies T-account, and the purchase of office supplies in the Supplies Expense T-account.

3. Compare the ending balances of the T-accounts under both approaches. Are they the same?

Date Accounts and Explanation Debit Credit