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Question - Total Store Supplies bought during the year amount to P3,680. Year-end count of store supplies showed on hand P1,107 unused during the year. Assuming that the Store Supplies acquisition was recorded as Store Supplies, an expense account:
Prepare the adjusting entry at year end.
Compute the balance of Store Supplies after posting the adjusting entry.
Compute the balance of Store Supplies Unused after posting the adjusting entry.
Prepare the reversing entry at the beginning of the next year.
Compute the balance of the Store Supplies after posting the reversing entry (assuming closing entries are prepared).
Compute the balance of Store Supplies Unused after posting the reversing entry.
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