Preparing Adjusting Journal Entries

The following transactions and events for Stellar Corp. are being reviewed for possible adjusting entries at December 31 (the end of its accounting period).

8. On January 1, Shipping Supplies amounted to $400. During the year, shipping supplies that cost $8,000 were purchased and debited to Shipping Supplies. At the end of the year, a physical inventory count revealed that shipping supplies still available were $1,600.

General Journal

.Account Name Dr .Cr.

8			Answer
			Answer
	To record the supplies.