Question

Sheldon company began year 1 with $1,200 in its supplies account. during the year, the company purchased $3,400 of supplies on account. the company paid $3,000 on accounts payable by year end. at the end of year 1, sheldon counted $1,400 of supplies on hand. sheldon's financial statements for year 1 would show:

Answer 1

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