Question

CRANE COMPANY Adjusted Trial Balance January 31, 2020 Debit Credit Supplies $900 Prepaid Insurance 1,800 Salaries and Wages Payable $ 700Unearned Service Revenue 750 Supplies Expense 900 Insurance Expense 300 Salaries and Wages Expense 2,600Service Revenue 3,400 If the amount in Supplies Expense is the January 31 adjusting entry, and $3,400 of supplies was purchased in January, what was the balance in Supplies on January 1?

Answer 1

Answer:

beginning supplies 1,600

Explanation:

With the following identity we will sovle for beginning supplies:

beginning + purchases = ending + expense

the left side are the input of supplies

and the right side are the output

we will plug into the formula and solve for beginning supplies

beg + 3,400 = 900 + 900

beg = 3,400 - 900 - 900 =  1,600