Organic Market, a grocery store, purchased supplies for $12,000 cash on July 1, 2020. As of December
Question:
Organic Market, a grocery store, purchased supplies for $12,000 cash on July 1, 2020. As of December 31, 2020, $7,000 had been used and $5,000 of supplies had not been used. Organic Market prepares financial statements on an annual basis and has a December 31 year-end.
a. Record the journal entry on July 1, 2020.
b. In order to prepare the annual financial statements, record the adjusting journal entry to reflect the amount of supplies used as of December 31, 2020.
c. On January 1, 2021, what amount in supplies does Organic Market have?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Question Posted: