Question

Brief Exercise 3-03

Sandhill Advertising Company’s trial balance at December 31 shows Supplies $8,000 and Supplies Expense $0. On December 31, there are $2,900 of supplies on hand.

Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31

Supplies
12/3112/31 Bal.		12/3112/31 Bal.
12/3112/31 Bal.		12/3112/31 Bal.
Supplies Expense
12/3112/31 Bal.		12/3112/31 Bal.

Answer 1

Date	Accounts title and explanation	Debit $	Credit $
Dec. 31	Supplies expenses	$ 5,100
	Supplies           ( $ 8,000 (-) $ 2,900)		$ 5,100
	(To record the adjuting entry for Supplies)

	Supplies Account
Balance - 12/31	$ 8,000	$ 5,100	12/31 -Bal. Supplies expenses
Ending balance - 12/31	$ 2,900
	Supplies Expenses
Balance - 12/31	$ 5,100