Question

englewood corporation experienced four situations for its supplies. view the four situations. requirement 1. calculate the amounts that have been left blank for each situation. for situations 1 and 2, journalize the needed transaction. consider each situation separately. situation 3 beginning supplies $700 purchases of supplies during the year 1,300 total amount to account for 2,000 ending supplies (700) supplies expense $1,300 calculate the amounts that have been left blank for situation 4. situation 4 beginning supplies $1,000 purchases of supplies during the year 800 total amount to account for 1,800 ending supplies (200) supplies expense $1,600 for situations 1 and 2, journalize the needed transaction. consider each situation separately. (record debits first, then credits. exclude explanations journal entries.) record the entry for situation 1 to record the purchase of supplies. accounts debit credit

Explanation:

Step1: Recall the supplies - accounting formula

Total amount to account for = Beginning supplies + Purchases of supplies during the year. Supplies Expense=Total amount to account for - Ending supplies.

Step2: Analyze Situation 3

• Given Beginning supplies = $700$, Purchases of supplies during the year is unknown, Total amount to account for = $2000$, Ending supplies = $700$, Supplies Expense = $1300$.
• Using the formula Total amount to account for = Beginning supplies+Purchases of supplies during the year, we can find Purchases of supplies during the year. Let Purchases be $x$. Then $2000 = 700+x$, so $x=2000 - 700=1300$.
• Using Supplies Expense=Total amount to account for - Ending supplies, $2000-700 = 1300$ which is consistent.

Step3: Analyze Situation 4

• Given Beginning supplies = $1000$, Purchases of supplies during the year = $800$, Total amount to account for = $1800$, Supplies Expense = $1600$.
• Using Supplies Expense=Total amount to account for - Ending supplies, let Ending supplies be $y$. Then $1600=1800 - y$, so $y = 1800-1600=200$.

Step4: Journal - entry for purchase of supplies (assuming cash - purchase for simplicity)

• When supplies are purchased, the Supplies account is debited and the Cash (or Accounts Payable if on credit) account is credited.
• For Situation 1 (purchase of supplies), if we assume a cash - purchase:
• Debit: Supplies
• Credit: Cash

Answer:

For Situation 3, Purchases of supplies during the year is $1300$.
For Situation 4, Ending supplies is $200$.
Journal - entry for purchase of supplies (Situation 1, assuming cash purchase):

Accounts	Debit	Credit
Cash		[Amount of purchase]