At March 1, 2015, Minutemen Corp. had supplies on hand of $500. During the month, Minutemen purchased supplies of $1,200 and used supplies of $1,500. The March 31 adjusting journal entry should include a:

31 March  Supplies Expense     1500 Dr

                    Supplies Account        1500 Cr

Explanation:

We prepare the adjusting entry at the end of the period. Here the adjusting is done at the end of the month.

Fost, we calculate the value of supplies we have.

Supplies = Opening balance + purchases

Thus, supplies account has a balance of =  500 + 1200 = $1700

During the month, we used supplies of $1500. Thus the remaining balance in supplies account at the end of the month is = 1700 - 1500 = 200

To reduce the supplies account balance and charge the value of used supplies, We debit the supplies expense account by $1500 and credit the supplies account by $1500.

Credit of $1,500 to the supplies account.

Explanation:

Basically, the adjusting entry of supplies refers the value of supplies used during a particular period. This is estimated by deducting the closing value of supplies from the addition of opening value of supplies and supplies purchased during the month.

Since we are already given the value supplies used as $1,500 in the question, the $1,500 is the value of the adjusting entry that will be journalized be as follows:

Minutemen Corp.

March 31

Debit: Supplies expense account with $1,500  

Credit: Supplies account with $1,500

Being the adjusting entry for the month of March.

Therefore, the March 31 adjusting journal entry should include a credit of $1,500 to the supplies account.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi