Adjustment for Supplies Answer each of the following independent questions conce

Question

Adjustment for Supplies Answer each of the following independent questions concerning supplies and the adjustment for supplies. a. The balance in the supplies account, before adjustment at the end of the year, is $6,270. What is the amount of the adjustment if the amount of supplies on hand at the end of the year is $2,950? The supplies account has a balance of $1,250, and the supplies expense account has a balance of $3,500 at the end of the first year of operations. What was the amount of supplies purchased during the year?

Explanation / Answer

a. Amount of Adjustment for Supplies = Supplies Account balance before adjustment - Physical stock of Supplies at the year end = $       6,270 - $        2,950 = $       3,320 b. Let Purchase for the year be X X + 0 - $ 3,500 = $ 1,250 X = $ 1,250 + $ 3,500 X = $ 4,750 Therefore Purchase of supplies for the year is $ 4,750.

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