Silverstone Events had $2,000 of supplies on hand on January 1, 2023. During the year, they purchased $40,500 of supplies with cash. On December 31, 2023, they had $5,500 of supplies on hand. Silverstone Events has the calendar year as its fiscal year and makes adjusting entries on a yearly basis. What entry will they report to record the supplies used for the year? A. Debit Supplies Expense and credit Supplies for $5,000. B. Debit Supplies and credit Cash for $40,500. C. None of these answers are correct. D. Debit Supplies Expense and credit Supplies for $37,000. E. Debit Supplies Expense and credit Supplies for $37,500.
Silverstone Events had $2,000 of supplies on hand on January 1, 2023. During the year, they purchased $40,500 of supplies with cash. On December 31, 2023, they had $5,500 of supplies on hand. Silverstone Events has the calendar year as its fiscal year and makes adjusting entries on a yearly basis. What entry will they report to record the supplies used for the year? A. Debit Supplies Expense and credit Supplies for $5,000. B. Debit Supplies and credit Cash for $40,500. C. None of these answers are correct. D. Debit Supplies Expense and credit Supplies for $37,000. E. Debit Supplies Expense and credit Supplies for $37,500.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...
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Transcribed Image Text:Silverstone Events had $2,000 of supplies on hand on January 1, 2023.
During the year, they purchased $40,500 of supplies with cash. On
December 31, 2023, they had $5,500 of supplies on hand. Silverstone
Events has the calendar year as its fiscal year and makes adjusting
entries on a yearly basis. What entry will they report to record the
supplies used for the year?
A. Debit Supplies Expense and credit Supplies for $5,000.
B. Debit Supplies and credit Cash for $40,500.
C. None of these answers are correct.
D. Debit Supplies Expense and credit Supplies for $37,000.
E. Debit Supplies Expense and credit Supplies for $37,500.
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