The following is a partial unadjusted Trial Balance.

Bravo Unlimited

Unadjusted Trial Balance (partial)

2/29/16

Accounts Debit Credit

Cash $15,500

Supplies 14,000

Accounts Payable $10,500

Supplies Expense 5,000

The Supplies account balance on February 1, 2016 was $2,000. During the month of February Bravo purchased $12,000 of supplies for use in its operations. On February 29, Bravo warehouse chief inventoried supplies and determine the value on hand was $1,500. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment.

Question

Matthews

Business

28 May, 17:21

The following is a partial unadjusted Trial Balance.

Bravo Unlimited

Unadjusted Trial Balance (partial)

2/29/16

Accounts Debit Credit

Cash $15,500

Supplies 14,000

Accounts Payable $10,500

Supplies Expense 5,000

The Supplies account balance on February 1, 2016 was $2,000. During the month of February Bravo purchased $12,000 of supplies for use in its operations. On February 29, Bravo warehouse chief inventoried supplies and determine the value on hand was $1,500. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment.

+2

Answers (1)

Know the Answer?

Kaiden Mercado · Answer 1

Supplies Expense 12500

Explanation:

Bravo Unlimited

Adjustment Entry

Date Particulars Debit Credit

February 29 Supplies Expense 12500

Supplies Account 12500

(Opening bal + purchases - Ending bal = Expense = 2000 + 12000 - 1500 = 12500

At the month end Supplies were used for $ 12500 and supplies on hand are $ 1500.

On 2nd Feb the supplies account totalled $ 14000 but $5000 supplies had been expensed so the total amount of supplies used up is calculated by (Opening bal + purchases - Ending bal = Expense) the formula given above.