Question

Sheldon Company began Year 1 with $1,900 in its supplies account. During the year, the company purchased $5,600 of supplies on account. The company paid $2,800 on accounts payable by year end. At the end of Year 1, Sheldon counted $3,300 of supplies on hand. Sheldon's financial statements for Year 1 would show:

Answer 1

Answer:

Sheldon's financial statement for year 1 would show;

Supplies inventory =

Supplies expense =

Account payable =

Explanation:

Supplies account at the beginning of the year = $1,900

Purchases during the year= $5,600

Payment during the year = $2,800

Supplies counted at the end of the year = $3,300

Supplies used in year 1 = $1,900 + $5,600 - $3,300

= $4,200

Account payable at the end of the year = $4,200 - $2,800

= -$1,400