Windsor Advertising Company\'s trial balance at December 31 shows Advertising Su

Question

Windsor Advertising Company's trial balance at December 31 shows Advertising Supplies $6,700 and Advertising Supplies Expense $0. On December 31, there are $2,700 of supplies on hand.

Prepare the adjusting entry at December 31.

Date Account/Description Debit Credit
Dec. 31 Advertising SuppliesCashAccounts ReceivableAccounts PayableAccrued SuppliesPrepaid SuppliesAdvertising Supplies Expense
Accrued SuppliesAccounts PayableAdvertising SuppliesAdvertising Supplies ExpensePrepaid SuppliesCashAccounts Receivable


Using T accounts, enter the balances in the accounts listed below, post the adjusting entry as necessary, and indicate the adjusted balance in each account. (If there is no transaction, enter 0 for the amount.)

Advertising Supplies
12/31 12/31
12/31 Bal. 12/31 Bal.



Advertising Supplies Expense
12/31 12/31

Explanation / Answer

DEBIT

CREDIT

31DEC

SUPLIES EXPENSE (+E)

4000

SUPPLIES(-A)

4000

Supplies a/c

CREDIT

31 DEC

TO

BALACNE b/d

6700

31 DEC by supplies expense --------4000

2700

6700

6700

1 JAN

TO BALACNE b/d

2700

31 DEC TO BALACNE b/d

4000

31 DEC

Balance c/d

4000

4000

4000

DEBIT

CREDIT

31DEC

SUPLIES EXPENSE (+E)

4000

SUPPLIES(-A)

4000

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