Bridge Company Keeps a Small Inventory of Supplies Used for Cleaning

question 103

Essay

Bridge Company keeps a small inventory of supplies used for cleaning and maintenance purposes. On January 1, 2016, the inventory of supplies on hand was $2,000. During the year, supplies purchased were debited to the supplies account in the amount of $6,500. On December 31, 2016, the amount of supplies in the storeroom was $1,750. The books are adjusted only at year-end.
Required:
Prepare the adjusting entry required at December 31, 2016.

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Definitions:

Regulated Emotions

The process of controlling or managing one's emotional responses in alignment with societal norms or personal goals.

Rate of Return

The increase or decrease in value of an investment during a specific time frame, represented as a proportion of the investment's initial cost.

Compounded Annually

Interest on an investment is calculated once per year and added to the principal, allowing the investment to grow at an increasing rate.

Investments

Resources allocated with the intention of generating future benefits, such as income or revenue growth.