Answer:
Dividend for year one;
2.40 × (1+0.12)= 2.688
For year 2
2.40 × (1+0.12)^2 =3.01056
For year 3
2.40 ×(1+0.12)^3 = 3.3718
If you are looking for the adjusting entry at the end of the year, it would be:
Office Supplies Expense 5000 Office Supplies 5000
The amount to be recorded is 5000 because:
Beginning supplies is $240
Then there is an additional supplies $5,200
So there is a total of 5,440 supplies.
But the ending inventory is $440.
Deduct the $440 from the $5440 which will give us $5,000. This is to make sure that the amount in the journal entry at the end of the year will be same with the physical count of the supplies.