Question 1

6 Points

Utilize the Chart of Accounts listed below to answer questions A, B, and C.

Green has the following accounts in its General Ledger:

Cash Accounts Payable Retained Earnings

Supplies Wages Payable Service Revenue

Inventory Unearned Service Revenue Supplies Expense

Prepaid Maintenance Unearned Maintenance Revenue Maintenance Expense

Equipment Notes Payable Wages Expense

Accumulated Depreciation Common Stock Depreciation Expense

A. On March 1, 2017 Green Company purchased $12,500 of office supplies. On that date Green recorded the supplies purchase transaction as follows:

Dr. Cr.

Supplies 12,500

Cash 12,500

The entry above is the only entry Green has made related to this item. The balance was zero in the Supplies account prior to the above entry.

On March 31, 2017 Green counted the office supplies and determined there were $9,300 remaining.

In the General Journal below record the required March 31, 2017 adjusting journal entry.