Accounting for Inventories of O f fice Supplies Georgetown purchased supplies on August 8, 20X2, for

Accounting for Inventories of O f fice Supplies

Georgetown purchased supplies on August 8, 20X2, for $3,600. At the fiscal year-end on Septem- ber 30, the inventory of supplies was $2,800.

Required

a. Assume that Georgetown uses the consumption method of accounting for inventories. (1) Prepare the entry for the purchase on August 8, 20X2.

(2) Prepare the entries required on September 30, 20X2, including the closing of the Expendi-

tures account.

(3) Assuming the supplies were used during 20X3, prepare the entries on September 30, 20X3.

b . Assume that Georgetown uses the purchase method of accounting for inventories. (1) Prepare the entry for the purchase on August 8, 20X2.

(2) Prepare the entries required on September 30, 20X2, including the closing of the Expendi-

tures account.

(3) Assuming the supplies were used during 20X3, prepare the entry on September 30, 20X3.

 

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