Question

At the beginning of the year, office supplies of $ 1,100 were on hand. During the year, Dash Air Conditioning Service paid $ 5,000 for more office supplies. At the end of the year, Dash has $ 700 of office supplies on hand.

Requirements
1. Record the adjusting entry assuming that Dash records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the be-ginning balance and purchase of office supplies in the Office Supplies T-account.
2. Record the adjusting entry assuming that Dash records the purchase of office supplies by initially debiting an expense account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance in the Office Supplies T-account, and the purchase of office supplies in the Supplies Expense T-account.
3. Compare the ending balances of the T-accounts under both approaches. Are they the same?



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  • CreatedJanuary 16, 2015
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