A company started the year with $400 of supplies. During the year the company purchased additional supplies costing $1,600. There were $800 of supplies on hand at the end of the year. An adjusted trial balance prepared at the end of the accounting period will show the following balance in supplies:

Question

Quizplus · Accepted Answer

Supplies expense = Beginning supplies + Purchases - Ending supplies= $400 + $1,600 - $800= $1,200The adjusted trial balance will show a balance of $800 in supplies.

A Company Started the Year with $400 of Supplies