Ask Experts Questions for FREE Help !
Ask
    crys1085's Avatar
    crys1085 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 25, 2013, 10:54 AM
    Adjusting entries
    Merchandise Inventory after trial balance 985.
    Merchandise Inventory at end of period 124,115. What is adjusting entry?

    Supplies after trial balance 550.
    Supplies at end of period 975.
    What is adjusting entry?
    mb12346746753's Avatar
    mb12346746753 Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Nov 30, 2013, 04:32 PM
    Adjusting entries are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #3

    Dec 1, 2013, 09:41 AM
    You have to know the account balance of supplies at the end of the period, which you do not have. You should have this information in your problem or you should have the amount of purchases which will be added to your beginning account balance to get your ending account balance.

    Your adjusting entry amount will be for the difference between your ending account balance and your actual account balance. Your adjusting entry will be:
    Debit Cost of Goods Sold for the difference between your ending account balance and your actual inventory balance
    Credit Merchandise Inventory for the same amount
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Adjusting Entries and Closing Entries [ 6 Answers ]

The Flash Pan Company manufactures cooking products. On August 1, 2007, the company borrowed $125,000 from creditors. Semiannual interest payments of $7,500 are to be made to creditors beginning January 31, 2008. On July 1, 2007, the company purchased a 1-year insurance policy for $10,000 and...

Preparing adjusting entries and closing entries [ 3 Answers ]

I cannot find any examples about this question on my book or anywhere else Please help.~ The following list includes selected permanent account and all of the temporary accounts from the December 31, 2008, unadjusted trial balance of Emiko Co. a business owned by Kumi Emiko. Use these account...

Advantages and disadvantages of automated systems for adjusting adjusting entries [ 5 Answers ]

Adjusting entries is something I have always done manually, is there any advantage to using an automated accounting system?

Adjusting entries: how to journalize a specific adjusting entry [ 1 Answers ]

How would I journalize this adjusting entry? Invoices representing $1,000 of services performed during the month have not been recorded as of May 31. :confused:

Adjusting journal entries from adjusting column of work sheet [ 2 Answers ]

How can I prepare necessary adjusting journal entries (a) through (e) by using the following information from the Adjustments columns of a 10-column work sheet. Interest recievable (d)$880 Office supplies ...

View more questions Search