Sebadoah is a barber who does his own accounting for his shop. Sebadoah purchased $1,500 of supplies in January and his inventory at the end of January shows $300 of supplies remaining. What adjusting entry should Sebadoah make on January 31?

Supplies expenseDr     $1,200

Supplies                                                          $1,200

Explanation:

Supplies purchased is $1,500

Ending inventory of supplies = $300

Inventory used during the period = 1,500 - 300

                                                        = $1,200

The journal entry passed to record supplies used:

Particulars                                Debit        Credit

Supplies expense                    $1,200

Supplies                                                     $1,200

(To record supplies used during

the period)

a naked warrant, also known as a covered warrant, is a derivative that allows the holder to buy or sell a security, such as a bond or share. unlike a normal warrant, it is not attached to a newly issued bond or preferred stock.

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