Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Adjusting Entries: Supplies

Financial Accounting

3. Accrual Accounting Concepts

Adjusting Entries: Supplies

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which accounts are affected when making the adjusting entry for office supplies at the end of an accounting period?

Office Equipment and Cash

Supplies Expense and Supplies

Supplies and Accounts Payable

Accounts Receivable and Supplies

Previous problemNext problem

Verified step by step guidance

Understand the nature of the transaction: Adjusting entries for office supplies are made to account for the supplies used during the accounting period. This ensures that expenses are properly matched with revenues in accordance with the matching principle.

Identify the accounts involved: The two accounts affected are 'Supplies Expense' (to record the cost of supplies used) and 'Supplies' (to reduce the balance of unused supplies).

Determine the adjustment amount: Calculate the value of supplies used during the period by subtracting the ending balance of supplies from the beginning balance plus any purchases made during the period.

Prepare the journal entry: Debit 'Supplies Expense' to increase the expense account and credit 'Supplies' to decrease the asset account. The entry ensures proper allocation of costs.

Review the impact: The adjusting entry ensures that the financial statements accurately reflect the expense incurred and the remaining supplies on hand, adhering to the accrual basis of accounting.