Question

1. On November 1, Target Corporation had a beginning balance in the supplies account of $600. During the month, Target purchased $1,200 of supplies. At November 30, Target Corporation had $300 of supplies on hand.

Prepare the adjusting journal entry required on November 30.

Answer 1

Solution

Adjusting entry

Date	General Journal	Debit	Credit
30-Nov	Supplies expense	$    1,500.00
	Supplies		$ 1,500.00
	(To record supplies expense)

Working

Supplies beginning balance	$        600.00
Add: Supplies purchased	$    1,200.00
Supplies available for use	$    1,800.00
Less: Supplies balance at the end	$        300.00
Supplies used	$    1,500.00