Cullumber Advertising Company's trial balance at December 31 shows Supplies $6,400 and Supplies Expense $0. On December 31, there are $3,200 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. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Supplies Supplies Expense
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First, we need to calculate the amount of supplies used during the period. The beginning balance of supplies was $6,400 and at the end of the period, there are $3,200 of supplies on hand. This means that $6,400 - $3,200 = $3,200 of supplies were used during the Show more…
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