Need help with Adjusting entries ADJ4- A count of supplies on hand at the end of
ID: 2478803 • Letter: N
Question
Need help with Adjusting entries ADJ4- A count of supplies on hand at the end of January totaled $400. The supplies on Hand account alance before adjustment is $600, so Supplies on Hand (account 12500) should be decreased by $200 from the Supplies on Hand account to the Supplies Expense account. So the adjusting entry will increase (debit) Supplies Expense (account 64800) by $200 and decreased (credit) Supplies on hand (account 12500) by $200. ADJ5- interest on the notes payable balance is 1 percent per month. The adjusting entry to record interest expense for January 2021 and the liability for interest payable is $10. To record this adjustment add otehr Current Liability account Account No. 21000 Interest payable.Explanation / Answer
Supplies Expense A/C dr. 200 To supplies on hand 200 Interest Expenses A/C dr. 10 To Interest payable 10 Income Statement Expenses: Supplies expenses 200 Interest Expense 10 Balance Sheet Liablities Assest Other liabilities Sunpplies on hand 600 Interest Payable 10 Less: Supplies Expe 200 400