the jackson company entered into the following transactions during 2008: there were $700 of supplies purchased on account. sales on account amounted to $9,500. Cash collections of receivables were $5,500. supplies on hand as of December 31, 2008 amounted to $225.

the adjusting entry necessary to record the supplies expense would result in:

1) $700 increase in assets and liabilities 2) $700 decrease in assets and equity 3) $575decrease in assets and equity 4) $575 increase in assets and liabilities

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Tod ThielLv2

28 Sep 2019

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10. Bud's Restaurant prepares monthly Financial Statements. On January 31, the balance in the Supplies account was $1,600. During February, $2,960 of supplies were purchased and debited to Supplies. What is the adjusting entry on February 28 to account for the supplies assuming a February 28 inventory showed that $1,300 of supplies were on hand? a. Supplies Expense 300 Supplies b. Supplies 300 Supplies Expense 300 Supplies 3,260 Cash 3,260 d. Supplies Expense 3,260 Supplies 3,260 e. Some other entry. 300

The balance in the supplies account, before adjustment at theend of the year, is $5,330. The year end is December 31.

Journalize the December 31 adjusting entry required if theamount of supplies on hand at the end of the year is $1,875. Referto the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
15	Land
16	Equipment
17	AccumulatedDepreciation-Equipment
19	AccumulatedDepreciation-Automobiles

	LIABILITIES
21	Accounts Payable
22	Unearned Fees
23	Salaries Payable
24	Taxes Payable

	EQUITY
31	John Doe, Capital
32	John Doe, Drawing

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Rent Expense
54	Salary Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
59	Miscellaneous Expense

The following account balances were taken from ABC Companyâs accounting records at December 31, 2008:

Accounts Payable ............ $58,000Accounts Receivable ......... $64,000Advertising Expense ......... $14,000Building .................... $54,000Cash ........................ $30,000Common Stock ................ $94,000Cost of Goods Sold .......... $45,000Dividends ................... $12,000Equipment ................... $68,000Income Tax Expense .......... $17,000Interest Revenue ............ $36,000Inventory ................... $62,000Notes Payable ............... $82,000Rent Expense ................ $10,000Retained Earnings ........... $40,000 (at January 1, 2008)Sales Revenue ............... $99,000Salaries Expense ............ $22,000Salaries Payable ............ $13,000Supplies .................... $19,000Trademark ................... $32,000Unearned Revenue ............ $27,000

ABC Company has not yet recorded year-end adjusting entries related to the following two items:

(1) Based on a physical count, ABC Company determined there were only $10,000 of supplies stillon hand and available to be used as of December 31, 2008.

(2) The unearned revenue relates to a $27,000 payment from a customer received on May 1, 2008for work to be performed each month for the next 18 months.

Calculate the total assets reported in ABC Company's balance sheet at December 31, 2008 afterthe appropriate adjusting entries have been recorded and posted. Do not use decimals in youranswer.

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