Hahn Consulting Company's general ledger showed $825 in the Supplies account on January 1, 2014. On May 31, 2014, the
Hahn Consulting Company's general ledger showed $825 in the Supplies account on January 1, 2014. On
May 31, 2014, the company paid $3,165 for additional supplies. A count on December 31, 2014, showed $1,015 of supplies on hand.
(a) Using T accounts, enter the January 1, 2014, balance in the Supplies and Supplies Expense accounts.
(b) Prepare the journal entry to record the purchase of supplies on May 31, 2014. Post the part of the journal entry that affects only the Supplies or Supplies Expense accounts.
(c) Calculate the amount of supplies used in 2014.
(d) Determine what amounts should appear on the 2014 financial statements for Supplies and Supplies Expense.
(e) Prepare and post the adjusting entry required at December 31, 2014.