Reference no: EM132959938

Utilize the Chart of Accounts listed below to answer questions A, B, and C. Green has the following accounts in its General Ledger:

Cash                                    Accounts Payable                               Retained Earnings

Supplies Wages                    Payable Service                                      Revenue

Inventory                         Unearned Service Revenue                       Supplies Expense

Prepaid Maintenance            Unearned Maintenance Revenue                  Maintenance Expense

Equipment                               Notes Payable                                    Wages Expense

Accumulated Depreciation                Common Stock                          Depreciation Expense

A. On March 1, 2017 Green Company purchased $12,500 of office supplies. On that date Green recorded the supplies purchase transaction as follows:

                            Dr.                    Cr.

Supplies                 12,500

Cash                                          12,500

The entry above is the only entry Green has made related to this item. The balance was zero in the Supplies account prior to the above entry.

On March 31, 2017 Green counted the office supplies and determined there were $9,300 remaining.

Problem 1: Record the required March 31, 2017 adjusting journal entry.