Chester Company started Year 2 with a $2,000 balance in its Cash account, a $500 balance in its Supplies account, and a $2,500 balance in its Common Stock account. During Year 2, the company experienced the following events:(1)Paid $1,400 cash to purchase supplies.(2)Physical count revealed $300 of supplies on hand at the end of Year 2.Based on this information, which of the following shows how the year-end adjusting entry required to recognize supplies expense would affect Chester's account balances?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Chester Company started Year 2 with a $2,000 balance in its Cash account, a $500 balance in its Supplies account, and a $2,500 balance in its Common Stock account. During Year 2, the company experienced the following events:(1)Paid $1,400 cash to purchase supplies.(2)Physical count revealed $300 of supplies on hand at the end of Year 2.Based on this information, which of the following shows how the year-end adjusting entry required to recognize supplies expense would affect Chester's account balances? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The Answer of Chester Company started Year 2 with a $2,000 balance in its Cash account, a $500 balance in its Supplies account, and a $2,500 balance in its Common Stock account. During Year 2, the company experienced the following events:(1)Paid $1,400 cash to purchase supplies.(2)Physical count revealed $300 of supplies on hand at the end of Year 2.Based on this information, which of the following shows how the year-end adjusting entry required to recognize supplies expense would affect Chester's account balances? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Chester Company Started Year 2 with a $2,000 Balance in Its