knowledge check 01 a company is in its first month of operations. supplies worth $4,000 were purchased on…

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. (if no entry is required for a transaction/event, select \no journal entry required\ in the first account field.) answer is not complete. no date general journal debit credit 1 january 31 supplies expense 1,000 supplies

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. (if no entry is required for a transaction/event, select \no journal entry required\ in the first account field.) answer is not complete. no date general journal debit credit 1 january 31 supplies expense 1,000 supplies

Answer

Explanation:

Step1: Calculate used - up supplies

The supplies purchased are $4,000 and the supplies on - hand at the end of the month are $3,000. The supplies used up is $4000 - 3000=1000$.

Step2: Determine the adjusting entry

Supplies expense needs to be debited to record the expense of the used - up supplies, and Supplies (an asset account) needs to be credited to reduce the balance of supplies on hand.

Answer:

No date General Journal Debit Credit
1 January 31 Supplies Expense 1000
Supplies 1000