[ars0013]

I do not understand how to plug my adjustments into my worksheet! I have an example of a problem that I am having: The given information states that Supplies: $4,150 and my Supplies on hand as of Dec 31: $1000. How should I go about doing this adjustment and how should it be placed in my worksheet.

I would be glad to give an email address to better help with the worksheet.

[morgaine300]

You can upload the worksheet to your post. (Go under advanced and look for manage attachments.)

Figuring out the adjusting entries and the worksheet itself are really two different things. Adjusting entries can be done without a worksheet, and are also only a part of the worksheet. So treat them as two different subjects.

What you have there is a deferred expense. That means that you have already paid for something, but you are deferring (putting off until later) the recognition of the expense. (Recognizing means to record on the books.) Supplies are an asset until you use them up. When they get used, they become an expense. Note that this is also true of other deferred expenses such as prepaid insurance and prepaid rent.

The $4150 is the amount of supplies you had recorded as an asset. The amount "on hand" is the actual count of supplies you have as of year-end. So you only have $1000 of that original $4150. So how much of them got used?

Since they're used, they are no longer an asset, so they have to come out of the supplies account. How do you take something out of supplies? And then the used portion also gets expensed, to recognize that they're used. What do you always do to expenses?

As for getting that on the worksheet, that's no big deal. It's the same as doing a journal entry, except that instead of the two accounts sitting together looking like a transaction, they are separated to the locations of the accounts on the worksheet. You just fill in the correct number under the correct column, by the correct account. Worry about the rest of the worksheet when you get all your adjusting entries done.