Dawes Advertising Companys trial balance at December 31 shows Advertising Supplies $8,800 and Advertising Supplies Expense $0.

Question:

Dawes Advertising Company’s trial balance at December 31 shows Advertising Supplies $8,800 and Advertising Supplies Expense $0. On December 31 there are $1,400 of supplies on hand. Prepare the adjusting entry at December 31 and, using T accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.