sf Problem 7.3

sf Problem 7.3 - Problem 7-3 Solution Requirement 1 July 1...

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Unformatted text preview: Problem 7-3 Solution Requirement 1 July 1 purchase of supplies Date Account Name Debit Credit 7/1/11 Supplies Cash Purchase supplies 1,315 1,315 Requirement 2 July 31 supplies on-hand $1,097 Shop Towels 80 x $4 = $320 Degreasing Fluid 65 x $9 = $585 Gasket Sealer 32 x $6 = $192 Total $1,097 Requirement 3 "T" Account Analysis for July 31 adjusting entry "T" Account Analysis for Assets and Liability Accounts Supplies (asset account) Account Name Debit (1) What is the current balance? (3) What adjustment is required to adjust from the current balance to the should be balance? (2) What should be the balance? Credit 1,315 218 1,097 Requirement 4 July 31 supplies adjusting entry Date Account Name Debit Credit 7/31/11 Supplies Expense Supplies 218 218 July Supplies adjusting entry Problem 7-3 Solution (continued) Requirement 5 August 31 supplies on-hand $784 Shop Towels 55 x $4 = Degreasing Fluid 48 x $9 = Gasket Sealer 22 x $6 = Total Requirement 6 "T" Account Analysis for August 31 adjusting entry "T" Account Analysis for Assets and Liability Accounts Supplies (asset account) Account Name Debit (1) What is the current balance? (3) What adjustment is required to adjust from the current balance to the should be balance? (2) What should be the balance? $220 $432 $132 $784 Credit 1,097 313 784 Requirement 7 August 31 supplies adjusting entry Date Account Name Debit Credit 8/31/11 Supplies Expense Supplies August Supplies adjusting entry 313 313 Requirement 8 Total dollar amount of supplies consumed during first two months of operation $531 $218 + $313 = $531 ...
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This note was uploaded on 03/20/2012 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

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sf Problem 7.3 - Problem 7-3 Solution Requirement 1 July 1...

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