Question

Ritter Advertising Company’s trial balance at December 31 shows Supplies $7,500 and Supplies Expense $0. On December 31, there are $2,900 of supplies on hand.

Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.

Date Account Titles Debit Credit Dec. 31 Supplies Expense 4,600 Supplies 4,600 Supplies Supplies Expense

At the end of its first year, the trial balance of Nygaard Company shows Equipment $30,200 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,700.

Prepare the adjusting entry for depreciation at December 31.

Answer 1

Supplies
Beg.Bal.	$7,500	Supplies expense	$4,600
End.Bal.	$2,900
Supplies Expense
Supplies	$4,600

2.

Date	Account title and explanation	Debit	Credit
Dec.31	Depreciatin expense	$4,700
	Accumulated depreciation-Equipment		$4,700

Depreciation Expense
Accumulated depreciation	$4,700
Accumulated Depreciation-Equipment
		Depreciation expense	$4,700

Bronowski Company Balance Sheet (Partial)
Equipment	$30,200
Less: Accumulated depreciation-Equipment	4,700	$25,500