Question

St. Nick Corporation's Toy-Making Supplies account showed a beginning balance of $200 and supplies purchased of $800. There were $400 of supplies on hand at year-end. The year-end adjustment would include an increase in Toy-Making Supplies Expense for1. $1,000.2. $800.3. $600.4. $400.

Answer 1

Answer:

3. $600

Explanation:

The computation of the amount is shown below:

= Beginning balance of supplies + purchase made - supplies on hand

= $200 + $800 - $400

= $600

The year end increase in toy making supplies expense is $600

The journal entry would be

Supplies expense A/c Dr $600

               To supplies A/c $600

(Being supplies account is adjusted)