Preparing and posting adjusting journal entries At December 31, the unadjusted trial balance of H&R tacks report supplies of $9000 and supplies expense of $0. on December 31, supplies costing $7700 are on hand. Prepare the adjusting journal entry on December 31. in separate T-accounts for each account, enter the unadjusted balance, post the adjusting journal entry, and report the adjusted balance