At the beginning of the? year, office supplies of $1,200 were onhand. During the? year, Tempo Air Conditioning Service paid $2,000for more office supplies. At the end of the? year, Tempo has $1,000of office supplies on hand.Read the requirements.
Requirement 1. Record the adjusting entryassuming that Tempo records the purchase of office supplies byinitially debiting an asset account. Post the adjusting entry tothe Office Supplies and Supplies Expense? T-accounts. Make sure toinclude the beginning balance and purchase of office supplies inthe Office Supplies? T-account.
Now post the adjusting entry to the Office Supplies and SuppliesExpense? T-accounts. Enter the beginning balances on the first lineof each account. Use a ?"Jan. ?1" reference to show the beginningbalance. Make sure to include the purchase of office supplies inthe Office Supplies? T-account, then post the adjusting entry. Usea? "Bal." reference to show the ending balance of each account.
