Becca Corp. purchased supplies at a cost of $5,200 during 2014. At January 1, 2015, supplies on hand were $1,600.
During the year, the company used $4,000 of supplies. Becca's accounting year ends on December 31.
A What is the effect on the accounting equation of the adjusting entry that is prepared at December 31, 2015?
B Under the accrual basis of accounting, how much is Supplies Expense for 2015?
C How much should be reported on the December 31, 2015, balance sheet for Supplies?
D What type of adjustment was made in part A?

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The Answer of Becca Corp. purchased supplies at a cost of $5,200 during 2014. At January 1, 2015, supplies on hand were $1,600.
During the year, the company used $4,000 of supplies. Becca's accounting year ends on December 31.
A What is the effect on the accounting equation of the adjusting entry that is prepared at December 31, 2015?
B Under the accrual basis of accounting, how much is Supplies Expense for 2015?
C How much should be reported on the December 31, 2015, balance sheet for Supplies?
D What type of adjustment was made in part A?