T5 - Solutions to Additional Q-ns.docVIP

SOLUTIONS Balance Day Adjustments Tutorial 5 - Classwork Question 1 – Prepaid expenses (a) Martin’s Medical Centre purchases medical supplies in bulk. The last purchase on 1 March 2009 was for $990 worth of bandages, dressings and vaccinations which were recorded as an asset. A count of medical supplies on 30 June 2009 revealed only $220 worth left in stock. Required: Prepare the adjusting entry required at 30 June 2009. MEDICAL SUPPLIES SUPPLIES EXPENSE 1 Mar Cash 990 30 Jun Supp.Exp. 770 30 June Med.Supp 770 Date Details Debit Credit 30 Jun