englewood corporation experienced four situations for its supplies. view the four situations. requirement 1…

englewood corporation experienced four situations for its supplies. view the four situations. requirement 1. calculate the amounts that have been left blank for each situation. for situations 1 and 2, journalize the needed transaction. consider each situation separately. situation 3 beginning supplies $700 purchases of supplies during the year 1,300 total amount to account for 2,000 ending supplies (700) supplies expense $1,300 calculate the amounts that have been left blank for situation 4. situation 4 beginning supplies $1,000 purchases of supplies during the year 800 total amount to account for 1,800 ending supplies (200) supplies expense $1,600 for situations 1 and 2, journalize the needed transaction. consider each situation separately. (record debits first, then credits. exclude explanations journal entries.) record the entry for situation 1 to record the purchase of supplies. accounts debit credit

englewood corporation experienced four situations for its supplies. view the four situations. requirement 1. calculate the amounts that have been left blank for each situation. for situations 1 and 2, journalize the needed transaction. consider each situation separately. situation 3 beginning supplies $700 purchases of supplies during the year 1,300 total amount to account for 2,000 ending supplies (700) supplies expense $1,300 calculate the amounts that have been left blank for situation 4. situation 4 beginning supplies $1,000 purchases of supplies during the year 800 total amount to account for 1,800 ending supplies (200) supplies expense $1,600 for situations 1 and 2, journalize the needed transaction. consider each situation separately. (record debits first, then credits. exclude explanations journal entries.) record the entry for situation 1 to record the purchase of supplies. accounts debit credit

Answer

Explanation:

Step1: Recall the supplies - accounting formula

Total amount to account for = Beginning supplies + Purchases of supplies during the year. Supplies Expense=Total amount to account for - Ending supplies.

Step2: Analyze Situation 3

  • Given Beginning supplies = $700$, Purchases of supplies during the year is unknown, Total amount to account for = $2000$, Ending supplies = $700$, Supplies Expense = $1300$.
  • Using the formula Total amount to account for = Beginning supplies+Purchases of supplies during the year, we can find Purchases of supplies during the year. Let Purchases be $x$. Then $2000 = 700+x$, so $x=2000 - 700=1300$.
  • Using Supplies Expense=Total amount to account for - Ending supplies, $2000-700 = 1300$ which is consistent.

Step3: Analyze Situation 4

  • Given Beginning supplies = $1000$, Purchases of supplies during the year = $800$, Total amount to account for = $1800$, Supplies Expense = $1600$.
  • Using Supplies Expense=Total amount to account for - Ending supplies, let Ending supplies be $y$. Then $1600=1800 - y$, so $y = 1800-1600=200$.

Step4: Journal - entry for purchase of supplies (assuming cash - purchase for simplicity)

  • When supplies are purchased, the Supplies account is debited and the Cash (or Accounts Payable if on credit) account is credited.
  • For Situation 1 (purchase of supplies), if we assume a cash - purchase:
    • Debit: Supplies
    • Credit: Cash

Answer:

For Situation 3, Purchases of supplies during the year is $1300$. For Situation 4, Ending supplies is $200$. Journal - entry for purchase of supplies (Situation 1, assuming cash purchase):

Accounts Debit Credit
Supplies [Amount of purchase]
Cash [Amount of purchase]