QS 3-6 (Algo) Prepaid (deferred) expenses adjustments LO P1 For each separate case below, follow the three-step process for adjusting the Supplies asset account at December 31. Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year. a. Supplies: The Supplies account has a $360 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $140 of supplies remaining. Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Supplies b. Supplies: The Supplies account has an $950 debit balance to start the year. Supplies of $2,400 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $725 of supplies remaining Check my work 5 b. Supplies: The Supplies account has an $950 debit balance to start the year. Supplies of $2.400 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $725 of supplies remaining points Step 1: Determine what the current account balance equals. Skipped Step 2. Determine what the current account balance should equal. eBook Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Hint References Supplies Supplies: The Supplies account has a $4,300 debit balance to start the year. During the current year, supplies of $10,000 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2,840. Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Supplies Ch ped ok Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. c. Supplies: The Supplies account has a $4,300 debit balance to start the year. During the current year, supplies of $10,000 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2,840. Insurance expense inces Prepaid insurance Prepaid rent Rent expense p 2 Supplies c. Supplies: The Supplies account has a $4,300 debit balance to start the year. During the current year, supplies of $10,000 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2.840 Prepaid insurance Prepaid rent Rent expense Supplies Supplies expense p 2 Supplies < Prev 5 of 26 Next > d c. Supplies: The Supplies account has a $4,300 debit balance to start the year. During the current year, supplies of $10,000 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2,840. Step 1: Determine what the current account balance equals. Ces Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Debit Credit Supplies