At the beginning of May, Golden Gopher Company reports a balance in Supplies of $320. On May 15, Golden Gopher purchases an additional $1,500 of supplies for cash. By the end of May, only $120 of supplies remains. Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the balances after adjustment on May 31 of Supplies and Supplies Expense.

Question

Bucky

Business

26 March, 17:19

At the beginning of May, Golden Gopher Company reports a balance in Supplies of $320. On May 15, Golden Gopher purchases an additional $1,500 of supplies for cash. By the end of May, only $120 of supplies remains. Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the balances after adjustment on May 31 of Supplies and Supplies Expense.

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Helena Mccann · Answer 1

The answer of each requirement is given below.

The necessary entries in the Journal Entry

Two entries will be made one to record purchase and other to record expense.

Debit Supplies Stock Asset $ 1,500

Credit Cash $ 1,500

Debit Cost of Goos Sold Expense $ 1,700 (320+1500-120)

Credit Supplies Stock Asset $ 1,700

Calculate the balances

The supplies expense can be calculated as follow.

Opening balance + Purchase = Expensed out + Closing Balance

Supplies Expense = 320+1,500-120

Supplies Expense = $ 1,700