[Staci0115]

The following is a partial trial balance for the Mendoza Company as of December 31, 2004:

The Mendoza Company
Partial Trial Balance
December 31, 2004


Office suppley inventory $1,400 DR
Wages payable $0 CR
Office supply expense $36,000 DR
Wage expense $45,500 DR

Additional information includes the following:
a. Office supplies on hand at the year end were $1,230.
b. The total payroll cost for the year 2004 was $50,000. At December 31, 2004, the company owed employees $4,500 for wages earned in 2004.

Record the adjusting entries required at December 31, 2004, based on the above information.

[pready]

The adjusting entry will be:

A. the difference between the Office Supplies account and what is actually on hand
Debit Office Supplies Expense for the difference
Credit Office Supplies for the difference.

Note: The ending amount in your Office Supplies Account should be your ending inventory.

B: You need to Debit Wage expense for 4,500
And Credit Wages Payable for 4,500