Question
Wouldn't store supplies and office supplies be owner's equity? But that's what I put on my paper and I got it wrong. I always thought of them as expenses.
Supplies are assets, not owner's equity. As they are used up they're expensed. At the end of some period an adjusting entry is made to account for what has been used, and the amount used is some kind of supplies expense for the period.
Supplies are assets, not owner's equity. As they are used up they're expensed. At the end of some period an adjusting entry is made to account for what has been used, and the amount used is some kind of supplies expense for the period.