Texts: You have been assigned to examine the financial statements of Mari, Inc. for the year ended December 31, 2023. You discover the following situations in February 2024.
3. Mari, Inc. purchased $3,400 of supplies on September 4, 2023, recording a debit to Supplies Expense and credit to Cash. The Supplies account had a balance of $450 on January 1, 2023. A count revealed there were $700 on hand on December 31, 2023. No entries have been made to Supplies all year.
4. In 2023, the company sold equipment for $7,200 that had a book value of $4,200 and originally cost $60,000. The company credited the proceeds from the sale to the Equipment account. The company made the following entry:
Cash 7,200
Gain on Sale of Equipment 7,200
A. Assume the trial balance has been prepared but the books HAVE NOT been closed for 2023. Assuming all amounts are material, prepare journal entries showing the adjustments that are required. (Ignore income tax considerations).
B. Assume the trial balance has been prepared but the books HAVE been closed for 2023. Assuming all amounts are material, prepare journal entries showing the adjustments that are required. (Ignore income tax considerations).