Prepaid (deferred) expenses adjustments LO P1 For each separate case below, follow the three-step process for adjusting the supplies asset account at December 31. nts Step 1: Determine what the current account balance equals
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Skipped Assume no other adjusting entries are made during the year eBook
a. The Supplies account has a $360 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $140 of supplies remaining.
Hint Supplies
Step 1: Determine what the current account balance equals.
Print Step 2: Determine what the current account balance should equal.
eferences Step 3: Record the December 31, adjusting entry to get from step 1 to step 2
b. The Supplies account has an $950 debit balance to start the year. Supplies of $2,400 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $725 of supplies remaining. Supplies
Step 1: Determine what the current account balance equals
Step 2: Determine what the current account balance should equal.
Step 3 Record the December 31, adjusting entry to get from step 1 to step 2