QS 3-6 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.

The Supplies account has a $620 debit balance to start the year. No supplies were purchased during the current ar. A December 31 physical count shows $270 of supplies remaining DR or CR? Supplies 620 Step 1: Determine what the current account balance equals S 620 350 Step 2: Determine what the current account balance should equal $ 270 270 Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Credit pplies expense 350 Supplies 350 The Supplies account has an $1,600 debit balance to start the year. Supplies of $3,700 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $1,050 of supplies ining DR or CR? Supplies 1,600 Step 1: Determine what the current account balance equals $ 1,600 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. The Supplies account has a $5,600 debit balance to start the year. During the current year, supplies of $12,600 re purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled 3,620 Supplies 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