At March 1, 2013, Minutemen Corp. had supplies on hand of $500. During the month, Minutemen purchased supplies of $1,200 and used supplies of $1,400. The March 31 adjusting journal entry should include a .

Debit Supplies expense $1,400

Credit Supplies account  $1,400

Explanation:

The change in supplies account balance at the start of a period and at the end of the period is as a result of 2 factors namely; use and purchases.

While use will result in a decrease in the account balance, purchases will cause an increase.  Hence when a purchase is made, debit supplies account credit cash/accounts payable, when supplies are used, credit supplies and debit supplies expense.

This may be expressed mathematically as

Opening balance + purchases - use = closing balance

$500 + $1,200 - $1,400 = closing supplies account balance

closing supplies account balance = $300

Adjusting entries required,

Debit Supplies expense $1,400

Credit Supplies account  $1,400

press the paper clip and attach a file!

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know