Question

Wildhorse Advertising Company's trial balance at December 31 shows Supplies $8,400 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.)

The ledger of Blossom, Inc. on March 31, 2020, includes the following selected accounts before adjusting entries. 

An analysis of the accounts shows the following.

 1. Insurance expires at the rate of $500 per month

 2. Supplies on hand total $1,700.

 3 The equipment depreciates $500 per month

 4 During March, services were performed for two-fifths of the unearned service revenue.

Answer 1

Solution 1:- Journal entry

Date	Accounts and explanation	Debit	Credit
Dec 31	Supplies expenses	$5600
	Supplies		$5600

Supplies

Dec 31	$8400	Dec 31	$5600
		bal.	$2800

Supplies Expenses

Dec 31	$2800
		Bal.	$2800

Solution 2

Adjustment enties of transactions

Date	Accounts	Debit in $	Credit in $
Mar,31	Insurance expenses	500
	Prepaid insurance		500
Mar,31	Supplies expenses($2300-$1700)	600
	Supplies		600
Mar31	Depreciation	500
	Accumulated depreciation -Equipment		500
Mar31	Unearned services renvenue	5733.33
	Service revenue(2/3 of $8600)		5733.33