Question

englewood corporation experienced four situations for its supplies. 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 from any journal entries.) record the entry for situation 1 to record the purchase of supplies. accounts debit credit 1

Explanation:

Step1: Recall the supplies - expense formula

The formula for supplies expense is: Supplies Expense=Beginning Supplies + Purchases of Supplies - Ending Supplies.

Step2: For Situation 3

We know that Beginning Supplies = 700, Purchases of Supplies is unknown, Total amount to account for = 2000, Ending Supplies = 700, and Supplies Expense = 1300.
The total amount to account for is the sum of Beginning Supplies and Purchases of Supplies. So, Purchases of Supplies=Total amount to account for - Beginning Supplies.
Purchases of Supplies = 2000 - 700=1300.

Step3: For Situation 4

We know that Beginning Supplies = 1000, Purchases of Supplies = 800, Total amount to account for = 1800, Supplies Expense = 1600, and Ending Supplies is unknown.
Using the formula Supplies Expense=Beginning Supplies + Purchases of Supplies - Ending Supplies, we can re - arrange it to find Ending Supplies.
Ending Supplies=Beginning Supplies + Purchases of Supplies - Supplies Expense.
Ending Supplies=1000 + 800 - 1600 = 200.

Step4: Journal entry for purchase of supplies (general case)

When supplies are purchased, the Supplies account is debited (increases an asset) and either Cash (if paid immediately) or Accounts Payable (if purchased on credit) is credited.
If supplies are purchased for cash:
Debit: Supplies
Credit: Cash
If supplies are purchased on account:
Debit: Supplies
Credit: Accounts Payable

Answer:

For Situation 3: Purchases of Supplies = $1300
For Situation 4: Ending Supplies = $200
Journal entry for purchase of supplies (assuming cash purchase):
Accounts: Supplies, Debit: <Amount of purchase>, Credit: Cash, Debit: 0, Credit: <Amount of purchase>
Journal entry for purchase of supplies (assuming credit purchase):
Accounts: Supplies, Debit: <Amount of purchase>, Credit: Accounts Payable, Debit: 0, Credit: <Amount of purchase>