Sophia's Event Creations had $2,000 of supplies on hand on January 1, 2023. During the year, they purchased $25,600 of supplies with cash. On December 31, 2023, they had $3,500 of supplies on hand. Sophia's Event Creations follows the calendar year as its fiscal year and makes adjusting entries annually. What adjusting journal entry will they report to record the supplies used for the year? A) Debit Supplies Expense and credit Supplies for $3,500. B) Debit Supplies and credit Cash for $25,600. C) None of these answers are correct. D) Debit Supplies Expense and credit Supplies for $24,100. E) Debit Supplies Expense and credit Supplies for $27,600.
Sophia's Event Creations had $2,000 of supplies on hand on January 1, 2023. During the year, they purchased $25,600 of supplies with cash. On December 31, 2023, they had $3,500 of supplies on hand. Sophia's Event Creations follows the calendar year as its fiscal year and makes adjusting entries annually. What adjusting journal entry will they report to record the supplies used for the year? A) Debit Supplies Expense and credit Supplies for $3,500. B) Debit Supplies and credit Cash for $25,600. C) None of these answers are correct. D) Debit Supplies Expense and credit Supplies for $24,100. E) Debit Supplies Expense and credit Supplies for $27,600.
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:Sophia's Event Creations had $2,000 of supplies on hand on January 1, 2023. During the year,
they purchased $25,600 of supplies with cash. On December 31, 2023, they had $3,500 of supplies
on hand. Sophia's Event Creations follows the calendar year as its fiscal year and makes adjusting
entries annually.
What adjusting journal entry will they report to record the supplies used for the year?
A) Debit Supplies Expense and credit Supplies for $3,500.
B) Debit Supplies and credit Cash for $25,600.
C) None of these answers are correct.
D) Debit Supplies Expense and credit Supplies for $24,100.
E) Debit Supplies Expense and credit Supplies for $27,600.
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