Question

Sheldon Company began Year 1 with $1,600 in its supplies account. During the year, the company purchased $4,700 of supplies on account. The company paid $2,500 on accounts payable by year end. At the end of Year 1, Sheldon counted $2,700 of supplies on hand. Sheldon's financial statements for Year 1 would show:

Answer 1

Answer:

$2700 supplies in hand

$3600 Supplies expense

Explanation:

As you can see in question data Sheldon has already counted the supplies in hand so, we only have to calculate supplies expense by doing some minor workings

WORKINGS

Supplies Expense = Opening + purchases - payment made

Supplies Expense = $1600 + $4700 - $2500

Supplies Expense = $3600