Quiz- J Company has a $1,000 unadjusted balance in the Office Supplies account on December 31.
Required: What is the proper adjusting entry if Johnson could determine a) The amount of supplies remaining unused? b) The amount of supplies actually used?
a): If J Company simply counted the remaining supplies on December 31 and determined that they had a cost of $450, the Office Supplies account would look like this:
Office Supplies Unadjusted balance $1,000 ADJUSTMENT-> ? Supplies used Required ending balance 450 Salaries and Wages Expense 70,200 Utilities Expense 23,200 Advertising Expense 18,000 Repairs Expense 11,500 Miscellaneous Expense 4,050 Totals $430,200 $430,200
Required: Journalize the adjusting entries and label them as accruals or deferrals, adding accounts as needed.