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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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    https://brainmass.com/business/the-adjusting-process/adjusting-journal-entries-deferred-expense-512263

    Solution Preview

    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 ...

    Solution Summary

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

    $2.19