Question

Charlie Company had $1,800 of supplies on hand at January 1. During the year, supplies with a cost of $4,000 were purchased. At December 31, the actual supplies on hand amount to $1,300. After the adjustments are recorded and posted at December 31, determine the balances in the Supplies and Supplies Expense accounts.
Supplies Supplies Expense
a. $1,300 $4,500
b. $5,300 $5,800
c. $1,300 $5,800
d. $1,800 $4,500

Answer 1

Answer:

The correct option is A:

Supplies    Supplies Expense

$1,300         $4,500

Explanation:

The amount of supplies used in the month is the opening balance of supplies at the beginning of the month plus purchases of supplies minus closing balance of supplies at month end.

supplies used=supplies expense=$1,800+$4,000-$1,300=$ 4,500.00  

As a result of the above computation,supplies expense would be debited with $4,500 reflecting the cost of supplies made use of in the month while supplies inventory is debited with closing balance of $1,300.

Answer 2

Answer:

A. $1,300 $4,500

Explanation:

The balance of the Supply is $1,300 "which is the actual supplies on hand amount to $1300"

The supplies expenses amount is

= ($1800 + $4000) - $1300

=$7100