Answer:
cash 35,000 debit
service revenue 35,000 credit
supplies 6,000 debit
accounts payable 6,000 credit
supplies expense 4,200 debit
suplies 4,200 credit
b)
service revenue 35,000
supplies expense (4,200)
income 30,800
cash flow:
35,000 generated from operating activities
balance sheet:
cash 35,000
supplies 1,800
total assets 36,800
liaiblities 6,000 A/P
equity 30,800
c) supplies account: 1,800
6,000 - 4,200 = 1,800 It matches the inventory at hand as accounting represent reality
d) supplies expense: 0
expenses and revenue are temporary account are closed at year-end
Explanation:
a)
year-end adjustment for the consumption of supplies:
6,000 - 1,800 = 4,200
