Windsor Advertising Company’s trial balance at December 31 shows Advertising Supplies $6,700 and Advertising Supplies Expense $0. On December 31, there are $2,700 of supplies on hand.
Prepare the adjusting entry at December 31.
Date Account/Description Debit Credit
Dec. 31 Advertising SuppliesCashAccounts ReceivableAccounts PayableAccrued SuppliesPrepaid SuppliesAdvertising Supplies Expense
Accrued SuppliesAccounts PayableAdvertising SuppliesAdvertising Supplies ExpensePrepaid SuppliesCashAccounts Receivable
Using T accounts, enter the balances in the accounts listed below, post the adjusting entry as necessary, and indicate the adjusted balance in each account. (If there is no transaction, enter 0 for the amount.)
12/31 Bal. 12/31 Bal.
Advertising Supplies Expense