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The unadjusted trial balance of The Good Spa showed, among others, Medical Supplies and total Medical Supplies used up for the past months. Ledger postings showed the Medical Supplies Expense Debit Credit following: Medical Supplies Debit Credit Jan. 1 11,500 June 4 35,000 Dec. 1 25,500 On December 31, end of the accounting period, P15,500 are still on hand. Make the adjusting entry on December 31 for the medical supplies used.
Problem a) Make the entry on December 31 to adjust for the medical supplies on hand. Post the entry.
Problem b) Determine the adjusted balances to be presented in the financial statements.
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