On April 1,Spring Floral,Inc.has a balance of $300 in Supplies.During April,the company buys another $900 of supplies.On April 30,the company counts the supplies and finds $200 of supplies remaining.What will the company report on its April 30 balance sheet?

Question

Quizplus · Accepted Answer

The supplies balance on April 30 is $200, which means that $1,000 ($300 beginning balance + $900 purchases - $200 ending balance) was used during the month. Therefore, the company will report Supplies of $200 on its April 30 balance sheet. Supplies expense of $1,000 would be incorrect because that is the total amount of supplies used during the month, not the ending balance. Supplies of $1,000 would be incorrect because that is the total amount of supplies purchased during the month, not the ending balance. Supplies expense of $200 would be incorrect because that only represents the amount of supplies used during the month, not the ending balance.