The following is a partial unadjusted Trial Balance.

Bravo Unlimited
Unadjusted Trial Balance (partial)

2/29/16

Accounts Debit Credit
Cash $15,500
Supplies 14,000
Accounts Payable $10,500
Supplies Expense 5,000

The Supplies account balance on February 1, 2016 was $2,000. During the month of February Bravo purchased $12,000 of supplies for use in its operations. On February 29, Bravo warehouse chief inventoried supplies and determine the value on hand was $1,500. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment.

Supplies Expense         12500

Explanation:

Bravo Unlimited

Adjustment Entry

Date                          Particulars                     Debit           Credit

February 29          Supplies Expense         12500

                                      Supplies Account                       12500

( Opening bal+ purchases- Ending bal= Expense= 2000+ 12000- 1500= 12500

At the month end Supplies were used for $ 12500 and supplies on hand are $ 1500.

On 2nd Feb the supplies account totalled $ 14000 but $5000 supplies had been expensed  so the total amount of supplies used up is calculated by (Opening bal+ purchases- Ending bal= Expense) the formula given above.

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