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Accounting for Supplies

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From Accounting:

Republic Corporation purchased supplies at a cost of $12,215 during 2012. At January 1, 2012, supplies on hand were $10,312. During the year, the company used $14,000 of supplies. Republic accounting year ends on December 31.

A) What adjusting entry is prepared at December 31, 2012?

Dec. 31 - show adjusting entry

Supplies Expense _____________
Supplies _____________

B) Under the accrual basis of accounting, how much is Supplies Expense for 2012?
$ ________
C) How much should be reported on the December 31, 2012, balance sheet for Supplies ?
$ ________
D) What type of adjustment was made in part A?
Deferred_________

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Solution Summary

This solution illustrates how to make the journal entry to bring the book value of supplies to its actual value.

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A) What adjusting entry is prepared at December 31, 2012?

Dec. 31 - show adjusting entry

Supplies Expense 14,000
Supplies 14,000

B) Under the ...

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