Prepare an answer sheet with the column headings shown after the following list
ID: 2417480 • Letter: P
Question
Prepare an answer sheet with the column headings shown after the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name and amount and indicating whether it is an addition (1) or subtraction (2). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders’ equity. The first transaction is provided as an illustration.
During the month, Supplies Expense was debited $5,200 for supplies purchased. The cost of supplies used during the month was $3,800. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month.
Independent of transaction a, assume that during the month, Supplies (asset) was debited $5,200 for supplies purchased. The total cost of supplies used during the month was $3,800. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month.
Prepare an answer sheet with the column headings shown after the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name and amount and indicating whether it is an addition (1) or subtraction (2). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders’ equity. The first transaction is provided as an illustration.
Explanation / Answer
General Journal of transaction during the month:
Transaction Assets = Liabilities + Owner's Equity Net Income a. -5200 +1400 = + -5200 + 1400 b. -5200 + 5200 - 3800 = + -3800 c. +3400 = + +3400 d. -1900 = -1900 + e. + 1500 -1500 = + f. + 800 - 800 = + g +1650 = + +1650 h. +740 = + +740 i. -4200 = + -4200 j. = +1480 + -1480 k. = +3200 + -3200 Total -7910 = +2780 + -10690