Please answer Requirements 7 & 8 Purchasing Supplies and the Monthly Supplies Adjusting Entry On July 1, 2021, Martha Jones started Martha’s Auto Repair Shop, Inc. On that same day, Martha purchased the following supplies for use in the repair shop: Item Unit of Measure Quantity Purchased Price per Unit Extended Total Cost Shop Towels Rolls 120 $4 $480 Degreasing Fluid Quarts 75 $9 $675 Gasket Sealer Tubes 40 $6 $240 Total $1,395 On July 1, Martha paid cash for the supplies and set the accounting policy that all supplies would initially be recorded in the Supplies asset account. At the end of July, Martha counted the supplies that were left and prepared the following listing: Item Unit of Measure Quantity Remaining Shop Towels Rolls 80 Degreasing Fluid Quarts 65 Gasket Sealer Tubes 32 At the end of August, Martha counted the supplies that were left and prepared the following listing: Item Unit of Measure Quantity Remaining Shop Towels Rolls 55 Degreasing Fluid Quarts 48 Gasket Sealer Tubes 22 The following is a partial list of the accounts in Martha’s General Ledger. These are the only accounts you need for this problem. Cash Supplies Supplies Expense Requirement 1 Prepare the General Journal entry to record the purchase of the supplies on July 1. Requirement 2 Calculate the dollar amount of supplies on-hand as of July 31. Requirement 3 Prepare a “T” account analysis to determine the required July 31 adjustment to the Supplies account. Requirement 4 Prepare the July 31 General Journal supplies adjusting entry. Requirement 5 Calculate the dollar amount of supplies on-hand as of August 31. Requirement 6 Prepare a “T” account analysis to determine the required August 31 adjustment to the Supplies account. Requirement 7 Prepare the August 31 General Journal supplies adjusting entry. Requirement 8 What was the total dollar amount of supplies consumed during Martha’s first two months of operation?
Please answer Requirements 7 & 8
Purchasing Supplies and the Monthly Supplies Adjusting Entry
On July 1, 2021, Martha Jones started Martha’s Auto Repair Shop, Inc. On that same day, Martha
purchased the following supplies for use in the repair shop:
Item Unit of
Measure
Quantity
Purchased
Price per
Unit
Extended
Total Cost
Shop Towels Rolls 120 $4 $480
Degreasing Fluid Quarts 75 $9 $675
Gasket Sealer Tubes 40 $6 $240
Total $1,395
On July 1, Martha paid cash for the supplies and set the accounting policy that all supplies would
initially be recorded in the Supplies asset account.
At the end of July, Martha counted the supplies that were left and prepared the following listing:
Item Unit of
Measure
Quantity
Remaining
Shop Towels Rolls 80
Degreasing Fluid Quarts 65
Gasket Sealer Tubes 32
At the end of August, Martha counted the supplies that were left and prepared the following listing:
Item Unit of
Measure
Quantity
Remaining
Shop Towels Rolls 55
Degreasing Fluid Quarts 48
Gasket Sealer Tubes 22
The following is a partial list of the accounts in Martha’s General Ledger. These are the only
accounts you need for this problem.
Cash
Supplies
Supplies Expense
Requirement 1
Prepare the General
Requirement 2
Calculate the dollar amount of supplies on-hand as of July 31.
Requirement 3
Prepare a “T” account analysis to determine the required July 31 adjustment to the Supplies
account.
Requirement 4
Prepare the July 31 General Journal supplies adjusting entry.
Requirement 5
Calculate the dollar amount of supplies on-hand as of August 31.
Requirement 6
Prepare a “T” account analysis to determine the required August 31 adjustment to the Supplies
account.
Requirement 7
Prepare the August 31 General Journal supplies adjusting entry.
Requirement 8
What was the total dollar amount of supplies consumed during Martha’s first two months of
operation?
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