P6 At the start of the year, EE, MM, and RR Service Firms, each had P75,000 of supplies on hand. The three companies use different accounting procedures for recording supplies. EE and RR show the beginning balance in the Supplies on Hand account, but MM reflects the beginning balance in the Supplies Expense account. EE debits the account Supplies on Hand when supplies are acquired, while MM and RR follow the policy of debiting Supplies Expense upon acquisition. Each of the three companies acquired P452,000 of supplies at various times throughout the year, and each has P96,000 of supplies on hand at year-end. Required: Prepare the adjusting journal entry for each entity.

P6 At the start of the year, EE, MM, and RR Service Firms, each had P75,000 of supplies on hand. The three companies use different accounting procedures for recording supplies. EE and RR show the beginning balance in the Supplies on Hand account, but MM reflects the beginning balance in the Supplies Expense account. EE debits the account Supplies on Hand when supplies are acquired, while MM and RR follow the policy of debiting Supplies Expense upon acquisition. Each of the three companies acquired P452,000 of supplies at various times throughout the year, and each has P96,000 of supplies on hand at year-end. Required: Prepare the adjusting journal entry for each entity.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 13E

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