1. Giving 6 transactions that require adjusting entries. (Example: The company beginning balance of inventory is 1,000. In the period the company purchased 5,000 on credit. At the end of the period, the company determined 2,500 inventory on hand. In the period Supplies 5,000 Account Payable 5,000 At the end of the year The balance of the inventory account is 6,000. According to the balance and the ending inventory, the cost of supplies is: 1,000+ 5,000 - 2,500 = 3,500 --/-- Supplies expense 3,500 Supplies -/- 3.500