Question

knowledge check 01
a company is in its first month of operations. supplies worth $4,000 were purchased on january 5. at the end of the month supplies worth $3,000 were in hand. what adjusting entry would be made at the end of january? post the adjusting entry for the scenario provided.
note: if no entry is required for a transaction/event, select
o journal entry required\ in the first account field.
view transaction list
journal entry worksheet
1
record the consumption of supplies during the month if supplies worth $4,000 were purchased on january 5 and at the end of the month supplies worth $3,000 were in hand.
note: enter debits before credits.
date general journal debit credit
january 31 supplies expense 1,000
supplies

Explanation:

Step1: Calculate supplies used

Supplies used = Supplies purchased - Supplies on - hand. Supplies purchased = $4000$, supplies on - hand = $3000$. So, supplies used = $4000 - 3000=1000$.

Step2: Determine adjusting entry

The supplies expense needs to be recognized for the amount of supplies used, and the supplies asset account needs to be decreased. Debit Supplies Expense (increases an expense account) and credit Supplies (decreases an asset account) for $1000$.

Answer:

Date	General Journal	Debit	Credit
January 31	Supplies		1000