Chapter 3, Problem 3.7SE

Journalizing and posting an adjusting entry for office supplies

On November 1, Camden Equipment had a beginning balance in the Office Supplies account of $1,300. During the month, Camden purchased $1,400 of office supplies. At November 30, Camden Equipment had $1,200 of office supplies on hand.

Requirements

1. Open the Office Supplies T-account, and enter the beginning balance and purchase of office supplies.

2. Record the adjusting entry required at November 30.

3. Post the adjusting entry to the two accounts involved, and show their balances at November 30.