Question

Brief Exercise 3-03 Bramble Corp's trial balance at December 31 shows Supplies $7,900 and Supplies Expense $0. On December 31, there are $2,800 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. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually.) Date Account Titles Debit Credit Dec. 31 Supplies . . Supplies Expense .

Answer 1

date	accounts title	debit	credit
dec 31	supplies expense	$5100
	supplies		$5100

journal entry for december 31 is for the supplies consumed during the period

the consumed supplies during the period=$7900-$2800=$5100

this amount is treated as a supplies expense. as supplies is an expense account it should be debited when it increases and supplies is an asset account which should be credited when it decreases.

T accounts

supplies

	debit		credit
opening balance	$7900
		supplies	$5100

at the begining the supplies account has a debit balance of $7900 and during the period it consumed a $5100 supplies which should be credited to the supplies T account.therefore the supplies account have debit balance of $2800 ($7900-$5100) at the end of the period.

supplies expense

	debit		credit
		expense	$5100

the begining balance of supplies account is zero. during the period bramble company consumed supplies amounting to $5100 and this amount should be expensed to the accounts.supplies expense is an expense account, so the expense should enter in the credit side of the supplies expense T account, because the expense is increased during the period.at end of the period the supplies expense accounts have a credit balance of $5100.