c. the beginning balance of supplies was $4,400. during the year, laughter legal services purchased supplies…
c. the beginning balance of supplies was $4,400. during the year, laughter legal services purchased supplies for $5,500, and at december 31 the supplies on hand total $2,000. (assume that laughter legal services debits an asset account when supplies are purchased.) date accounts and explanation debit credit december 31
Answer
Explanation:
Step1: Calculate supplies used
The formula to calculate supplies used is Beginning supplies + Purchases - Ending supplies. Beginning supplies = $4,400, Purchases = $5,500, Ending supplies = $2,000. So, Supplies used = $4,400 + $5,500 - $2,000. $4400 + 5500-2000=7900$
Step2: Record the adjusting entry
The adjusting entry will debit Supplies Expense (to recognize the expense of supplies used) and credit Supplies (to reduce the asset account for the supplies that have been used). The amount of the debit and credit is the supplies used amount, which is $7,900.
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| December 31 | Supplies Expense | $7,900 | |
| Supplies | $7,900 |
Answer:
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| December 31 | Supplies Expense | $7,900 | |
| Supplies | $7,900 |