Answer:
Sheldon's financial statements for year 1 would show:
Supplies Inventory = $1,400
Supplies Expense = $3,200
Account Payable = $400
Explanation:
Supplies Account balance at beginning of the year = $1,200
Purchase during the year = 3,400
Payment during the year = $3,000
Supplies counted at end of the year = $,1400
Supplies used in the year 1 = 1200 + 3400 -1400 = $3,200
Account Payable at the end of year = 3,400 - $,3000 = $400
