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On June 1, During Its First Month of Operations, Soufflé

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Essay

On June 1, during its first month of operations, Soufflé Masters purchased supplies for $3,500 and debited the supplies account for that amount. At June 30, an inventory of supplies showed $1,000 of supplies on hand. What adjusting journal entry should be made for June?


Definitions:

Accountant-Client Privilege

The right of an accountant to not reveal any information given in confidence by a client. The privilege is not granted by every state or by the federal government.

Demanding Payment

The act of formally or informally requesting the settlement of a sum of money owed from a debtor.

Accounting Services

Professional services involving the recording, reporting, and analysis of financial transactions of a business or individual.

Engagement Letter

A written agreement to perform services in exchange for compensation, often used in professional settings like law, accounting, or consulting to outline the scope of work to be performed.

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