m. Supplies: The Supplies account has a $300 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $110 of supplies remaining. 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. Adjusting Entry Supplies expense Supplies $ $ Debit DR or CR? 300 Debit 110 Debit Credit ************* Supplies 300 110 230

m. Supplies: The Supplies account has a $300 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $110 of supplies remaining. 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. Adjusting Entry Supplies expense Supplies $ $ Debit DR or CR? 300 Debit 110 Debit Credit ************* Supplies 300 110 230

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14A: Expense Method Of Accounting For Prepaid Expenses

Section: Chapter Questions

Problem 1SEB: EXPENSE METHOD OF ACCOUNTING FOR PREPAID EXPENSES Ryans Fish House purchased supplies costing 3,000...

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