Your Questions About Purchased Supplies On Account

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William asks…

In which journal is the return of supplies purchased on account recorded?

In which journal is the return of supplies purchased on account recorded?

1. General journal

2. Cash Receipts journal

3. Purchases journal

4. Cash Payments journal

im confused with this accounting question thanks

financi4 answers:

1. General journal

Purchases journal is usually reserved for purchases of merchandise inventory.

Steven asks…

Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing?

Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $2,500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount and (2) explain how the Accounting Equation is impacted.

financi4 answers:

Accounts affected :

‘Supplies’, an asset account
‘Accounts Payable’, a liability account
————
The journal entry is :

Debit ‘Supplies’ $ 2,500 . . . . . . . . . . . . . [increasing the balance of that account]
Credit ‘Accounts Payable’ $ 2,500 . . . . . . [increasing the balance of that account]
———–
Effect of transaction on fundamental accounting equation :

Assets . . . . . . . . . . = . .Liabilities . . . . . + . . . Owners’ Equity
+ $ 2,500 . . . . . . . . = . + $ 2,500

David asks…

accounting ..In which journal is the return of supplies purchased on account recorded?

In which journal is the return of supplies purchased on account recorded?

1. General journal

2. Cash Receipts journal

3. Purchases journal

4. Cash Payments journal

Having a hard time figuring this one out thanks

financi4 answers:

1. General journal

Since supplies are not inventory, you would have used the General Journal when you made the purchase on account, so when you return supplies, you should use the GJ too.

Thomas asks…

describe the three elements of purchased supplies on account?

financi4 answers:

It’s been a while since accounting but I believe the three elements would be purchase price, a possible discount, and number of days the discount would be available. For instance, I would purchase $200 worth of supplies on account but would receive a 2% discount if I pay in full within 30 days.

Just my guess.

Ron, ChFC

Mark asks…

ABC Company purchased office supplies on account during the month of April for $2,600.?

ABC Company purchased office supplies on account during the month of April for $2,600. Payment for the supplies will be made in May. On April 1, the supplies account had a balance of $350. On April 30, supplies on hand amounted to $140. What was the amount of supplies used during April?

a. $2,810

b. $2,600

c. $2,460

d. $350

e. $210

financi4 answers:

A. $2,810

George asks…

Accounting question: “Purchased supplies on account”?

Hi,

I know that for this statement, the Accounts payable and Supplies would both increase.
My only problem is when I write my accounting statements, would this transaction be recorded as “Supplies Expense” under INCOME STATEMENT? or would it go under Liabilities as “Supplies” under the BALANCE SHEET?

Thank you for the help.

financi4 answers:

Debit: Supplies Expense (Under Income Statement)
Credit: Accounts payable

Accounts Payable is a liability. Whenever you have a liability account, more than likely the other side will be to an expense account.

Ken asks…

The balance in the office supplies account on July 1 was $3,200 , supplies purchased during July were ->?

The balance in the office supplies account on July 1 was $3,200 , supplies purchased during July were $2,500 , and the supplies on hand at July 31 were $2,800. What is the amount of supplies to be expensed for the month as the adjusting entry ?

$3,500
$2,800
$3,200
$2,900

financi4 answers:

Dr Supplies expense $2,900
Cr Supplies $2,900

John asks…

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs f?

. (Points: 2)
Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers. How will this business transaction affect the accounting equation?

1. Increase Assets (Supplies) and decrease Assets (Cash)

2. Increase Assets (Supplies) and increase Liabilities (Accounts Payable)

3. Increase Assets (Supplies) and decrease Owner’s Equity (Supplies Expense)

4. Increase Owner’s Equity (Supplies Expense) and increase Liabilities (Accounts Payable)

financi4 answers:

2. It will increase Assets and increase Liabilities

Charles asks…

Set up T-account (ledger account) for Cash; Accounts Receivable; Supplies; Accounts Payable; Capital;?

Set up T-account (ledger account) for Cash; Accounts Receivable; Supplies; Accounts Payable; Capital; Drawing; Professional Fees: and Operating Expenses.

a) Dec 2, Mr.Johnson invested $ 12,000 cash in the business.

b) Dec 4, Purchased supplies on account, $ 5,750

c) Dec 5, Paid operating expenses, $ 5,000.

d) Dec 6,, Billed Clients for fees, $ 6,940

e) Dec 7,, Received cash from cash clients, $ 4,200.

f) Dec 15,, Paid creditors on account, $ 1,000.

g) Dec 20, Received $ 2,600 from clients on account

h) Dec 25, Withdrew $ 1,000 cash for personal use

financi4 answers:

Set up each of your T accounts, with debits on the left and credits on the right. Then enter the journal entries I gave for your other question.

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