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Homework answers / question archive / Supplies have an OR10,000 unadjusted balance on your trial balance
Supplies have an OR10,000 unadjusted balance on your trial balance. At year-end, you count supplies of OR6,000. What adjustment will appear on your worksheet? -1 Select one: ? ? Supplies 4,000 Supplies expense 4.000 Ob No adjustment is needed because the Supplies account already has a correct balance 4.000 4.000 Supplies expense Supplies d Supplies expense Supplies 6,000 6.000 e TOSHIBA
Answer : (C)
Supplies Expense A/c DR. 4000
To Supplies 4000
( Being supplies excess balance adjusted to supplies expense account )
Reason : Period end balance in trial balance is 10000. But in reality you have supplies of 6000 only . So excess balance of 4000 is assumed to be used in the production . hence supplies expense is to be increased and supplies A/c is to be decreased .
