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What type of expense would use office supplies on hand that will be used in the next period?
Office supplies on hand that will be used in the next period are typically classified as a current asset rather than an expense. When these supplies are purchased, they are recorded as inventory. As they are utilized in the subsequent period, their cost is then recognized as an expense, specifically under "office supplies expense" in the income statement. This aligns with the matching principle in accounting, which aims to match expenses with the revenues they help generate.
Is factory supplies a product or a period cost?
Product cost
Is depreciation on office equipment classified as a period cost or product cost?
period cost
The entry to adjust for the cost of supplies used during the accounting period is?
debit Supplies Expense; credit Supplies
What is the journal entry for purchasing office supplies on credit?
The journal entry for purchasing office supplies on credit involves debiting the Office Supplies account and crediting Accounts Payable. For example, if the office supplies cost $500, the entry would be: Debit Office Supplies $500 Credit Accounts Payable $500 This reflects the increase in assets (office supplies) and the corresponding liability (amount owed).
Is supplies for administrative office classified as period cost of product cost?
Supplies for an administrative office would be classified office supplies, which is always treated as a cost of a period. Supplies for a manufacturing company would be classified as a product cost, i.e. wood (supply) in order to make desks (end product).
What type of expense would use office supplies on hand that will be used in the next period?
Office supplies on hand that will be used in the next period are typically classified as a current asset rather than an expense. When these supplies are purchased, they are recorded as inventory. As they are utilized in the subsequent period, their cost is then recognized as an expense, specifically under "office supplies expense" in the income statement. This aligns with the matching principle in accounting, which aims to match expenses with the revenues they help generate.
Is factory supplies a product cost or period cost?
Product cost
Is factory supplies a product or a period cost?
Product cost
Is depreciation on office equipment classified as a period cost or product cost?
period cost
The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as?
The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as Assets.
The entry to adjust for the cost of supplies used during the accounting period is?
debit Supplies Expense; credit Supplies
What is the journal entry for purchasing office supplies on credit?
The journal entry for purchasing office supplies on credit involves debiting the Office Supplies account and crediting Accounts Payable. For example, if the office supplies cost $500, the entry would be: Debit Office Supplies $500 Credit Accounts Payable $500 This reflects the increase in assets (office supplies) and the corresponding liability (amount owed).
What entry adjusts the cost of supplies used during the accounting period?
The entry that adjusts the cost of supplies used during the accounting period typically involves debiting the Supplies Expense account and crediting the Supplies Inventory account. This adjustment reflects the consumption of supplies, transferring their cost from the asset account to an expense account. The adjustment is made at the end of the accounting period based on a physical count or estimation of remaining supplies.
What is the average cost for office supplies for a home based business?
$5,500.00
Can I order wholesale packaging from the poast office?
The poast office does offer packaging supplies. Most poastal supplies are at no cost.
Is depreciation on factory equipment a period cost?
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
