Question

Georgetown purchased supplies on August 8, 20X2, for $3,600. At the fiscal year-end on September 30, the inventory of supplies was $2,800.

Required
a. Assume that Georgetown uses the consumption method of accounting for inventories.
(1) Prepare the entry for the purchase on August 8, 20X2.
(2) Prepare the entries required on September 30, 20X2, including the closing of the Expenditures account.
(3) Assuming the supplies were used during 20X3, prepare the entries on September 30, 20X3.
b. Assume that Georgetown uses the purchase method of accounting for inventories.
(1) Prepare the entry for the purchase on August 8, 20X2.
(2) Prepare the entries required on September 30, 20X2, including the closing of the Expenditures account.
(3) Assuming the supplies were used during 20X3, prepare the entry on September 30, 20X3.



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  • CreatedMay 23, 2014
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