Questions: Brief Exercise 3-6 (Algo) Record the adjusting entry for supplies (LO3-3) At the beginning of the year, Golden Gopher Company reports a balance In Supplies of 300. During the year, Golden Gopher purchases an additional 1,300 of supplies for cash. By the end of the year, only 100 of supplies remains. Required: 1.2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the yearend adjusted balances of Supplies and Supplies Expense. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the purchase of supplies for 1,300 cash.

To address the question, we need to record the necessary journal entries for the purchase and adjustment of supplies and calculate the year-end adjusted balances for Supplies and Supplies Expense.

1. Record the purchase of supplies for $1,300 cash:

   When Golden Gopher Company purchases additional supplies, the Supplies account is debited, and Cash is credited.

   \[ \begin{array}{|c|l|l|l|} \hline \text{Transaction} & \text{General Journal} & \text{Debit} & \text{Credit} \\ \hline 1 & \text{Supplies} & \$1,300 & \\ \hline & \text{Cash} & & \$1,300 \\ \hline \end{array} \]

2. Adjusting entry for supplies at year-end:

   At the end of the year, only $100 of supplies remains. Therefore, the Supplies Expense needs to be recorded for the amount used during the year.

   • Beginning balance of Supplies: $300
   • Purchases during the year: $1,300
   • Ending balance of Supplies: $100

   The amount of supplies used (and thus the Supplies Expense) is calculated as follows:

   \[ \text{Supplies Used} = (\text{Beginning Balance} + \text{Purchases}) - \text{Ending Balance} = (300 + 1,300) - 100 = 1,500 \]

   The adjusting entry to record the Supplies Expense is:

   \[ \begin{array}{|c|l|l|l|} \hline \text{Transaction} & \text{General Journal} & \text{Debit} & \text{Credit} \\ \hline 2 & \text{Supplies Expense} & \$1,500 & \\ \hline & \text{Supplies} & & \$1,500 \\ \hline \end{array} \]

3. Calculate the year-end adjusted balances:

   • Supplies: The ending balance is $100, as only this amount remains.
   • Supplies Expense: The total expense for the year is $1,500, as calculated above.

In summary, the journal entries record the purchase and usage of supplies, and the year-end adjusted balances reflect the remaining supplies and the total supplies expense for the year.