Adjusting journal entries
I have an unadjusted trial balance. All original entries involving cash have been made, but some entries were recorded incorrectly. I have to prepare in journal entry form all adjusting and correcting journal entries. This is one of my questions. I'm not sure what to do with last years balance and the proper adjusting or reversing journal entry. I have to do Per a physical count of office supplies, $3,141 of supplies remained at the end of 2010. The balance on the worksheet in the office supplies account represents last years ending balance of $2,500. During the year, $7,500 of office supplies was purchased and immediately expensed.