Fennel Flooring purchased office supplies for its showroom during the month of April for $2,600. The supplies were paid for during April. On April 1, the Supplies account had a balance of $350. On April 30, supplies on hand amounted to $200.
A What is the effect on the accounting equation of the adjusting journal entry necessary at April 30th?
B How much will be reported on the balance sheet at April 30 for Supplies?
C How much will be reported on the income statement for the month of April for supplies expense?
D If the adjustment in part A is not recorded, by what amount will net income be over or understated at April 30?

Question

Fennel Flooring purchased office supplies for its showroom during the month of April for $2,600. The supplies were paid for during April. On April 1, the Supplies account had a balance of $350. On April 30, supplies on hand amounted to $200.
A What is the effect on the accounting equation of the adjusting journal entry necessary at April 30th?
  B How much will be reported on the balance sheet at April 30 for Supplies?
C How much will be reported on the income statement for the month of April for supplies expense?
D If the adjustment in part A is not recorded, by what amount will net income be over or understated at April 30?

Quizplus · Accepted Answer

The Answer of Fennel Flooring purchased office supplies for its showroom during the month of April for $2,600. The supplies were paid for during April. On April 1, the Supplies account had a balance of $350. On April 30, supplies on hand amounted to $200.
A What is the effect on the accounting equation of the adjusting journal entry necessary at April 30th?
  B How much will be reported on the balance sheet at April 30 for Supplies?
C How much will be reported on the income statement for the month of April for supplies expense?
D If the adjustment in part A is not recorded, by what amount will net income be over or understated at April 30?

Fennel Flooring Purchased Office Supplies for Its Showroom During the Month