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 Expense:

Question

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The company's total supplies expenses for the year would be $2,000 ($400 beginning balance + $1,600 purchases - $800 ending balance). Therefore, the adjusted trial balance should show a balance of $1,200 in Supplies Expense ($2,000 total supplies expenses - any supplies expenses that have already been recorded and adjusted).

A Company Started the Year with $400 of Supplies