On December 31, the balance in the office supplies account is $1,385. A physical count shows $435 worth of supplies on hand. Prepare the adjusting entry for supplies.

Office Supplies

Consumable items that are used in the daily operations of an office like pens, paper, and staplers.

Adjusting Entry

A journal entry made in accounting to update the record of revenues earned or expenses incurred that have not been previously recorded.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.

Show proficiency in creating journal records for typical adjusting entries such as prepayments, accruals, and depreciation adjustments.
Compute and document modifications for pre-paid and accrued liabilities.

Verified Answer

Final Answer :

$1,385 − $435 = $950

Learning Objectives

Show proficiency in creating journal records for typical adjusting entries such as prepayments, accruals, and depreciation adjustments.
Compute and document modifications for pre-paid and accrued liabilities.