BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Debit Supplies Expense, $1, 800; Credit Supplies, $1, 800.
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Debit Supplies, $4, 200; Credit Supplies Expense, $4, 200.
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Debit Supplies Expense, $4, 200; Credit Supplies, $4, 200.
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Debit Supplies, $1, 800; Credit Supplies Expense, $1, 800.
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Detailed explanation-1: -At the end of the accounting period, a physical count of supplies revealed $1, 800 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: a Debit Supplies Expense, $1, 800; Credit Supplies, $1, 800.
Detailed explanation-2: -Answer and Explanation: Explanation: A purchase of supplies on account is recorded as a debit to supplies expense and a credit to accounts payable.
Detailed explanation-3: -The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable. If a company pays cash to purchase land, the journal entry to record this transaction will include a debit to Cash.
Detailed explanation-4: -Create Journal Entries Debit the supplies expense account for the cost of the supplies used. Balance the entry by crediting your supplies account. For example, if you used $220 in supplies, debit the supplies expense for $220 and credit supplies for an equal amount.
Detailed explanation-5: -The adjusting entry is the difference between the beginning balance in the supplies account and the actual supplies remaining. For example, if the beginning balance is $5, 000 and you have $4, 000 of supplies on hand, you used $1, 000 of supplies during the month.