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The following adjustments are necessary: 4. ADJ4: A count of supplies on hand at the end of January totaled $500. The Supplies on Hand account
The following adjustments are necessary:
4. ADJ4: A count of supplies on hand at the end of January totaled $500. The Supplies on Hand account balance before adjustment is $2,600, so Supplies on Hand (Account 12500) should be decreased by $2,100. An adjusting entry is required to transfer $2,100 from the Supplies on Hand account to a Supplies Expense account. So the adjusting entry will increase (debit) Supplies Expense (Account 64800) by $2,100, and decrease (credit) Supplies on Hand (Account 12500) by $2,100. (See Exercise 13.6.) 5. ADJS: The adjusting entry to record interest expense for January 2026 and the liability for interest payable is $10. To record this adjustment, add Other Current Liability account: Account No. 21000 Interest Payable. (See Exercise 13.6.) Step by Step Solution
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