Charlie Company had $1,800 of supplies on hand at January 1.During the year,supplies with a cost of $4,000 were purchased.At December 31,the actual supplies on hand amount to $1,300.After the adjustments are recorded and posted at December 31,determine the balances in the Supplies and Supplies Expense accounts.
$\begin{array}{llcc}
&& \text { Supplies } & \text { Supplies Expense } \
\end{array}$

a.
$\begin{array}{cc}
&&&\$1,800&&&\$4,000
\end{array}$

b.
$\begin{array}{cc}
&&&\$1,300&&&\$4,500
\end{array}$

c.
$\begin{array}{cc}
&&&\$5,300&&&\$5,800
\end{array}$

d.
$\begin{array}{cc}
&&&\$1,300&&&\$5,800
\end{array}$

Question

Charlie Company had $1,800 of supplies on hand at January 1.During the year,supplies with a cost of $4,000 were purchased.At December 31,the actual supplies on hand amount to $1,300.After the adjustments are recorded and posted at December 31,determine the balances in the Supplies and Supplies Expense accounts.  
$\begin{array}{llcc}
&&  \text { Supplies } &  \text { Supplies Expense } \
\end{array}$

a.
$\begin{array}{cc}
&&&\$1,800&&&\$4,000
\end{array}$

b.
$\begin{array}{cc}
&&&\$1,300&&&\$4,500
\end{array}$

c.
$\begin{array}{cc}
&&&\$5,300&&&\$5,800
\end{array}$

d.
$\begin{array}{cc} 
&&&\$1,300&&&\$5,800
\end{array}$

Quizplus · Accepted Answer

First, we need to calculate the total supplies available for use during the year. This can be calculated as follows:

Supplies available for use = Beginning supplies + Purchases - Ending supplies
= $1,800 + $4,000 - $1,300
= $4,500

Next, we need to record the adjustment for supplies used during the year. This can be calculated as follows:

Supplies used during the year = Supplies available for use - Supplies on hand at December 31
= $4,500 - $1,300
= $3,200

Finally, we can calculate the balances in the Supplies and Supplies Expense accounts after the adjustments as follows:

Supplies balance = Beginning supplies + Purchases - Supplies used during the year
= $1,800 + $4,000 - $3,200
= $2,600

Supplies Expense balance = Supplies used during the year
= $3,200

Therefore, the answer is B as it matches the calculated balances.

Charlie Company Had $1,800 of Supplies on Hand at January Supplies Supplies Expense \begin{array}{llcc}&& \text { Supplies } & \text { Supplies Expense } \\\end{array}​​ Supplies ​ Supplies Expense ​

Charlie Company Had $1,800 of Supplies on Hand at January $\begin{array}{llcc}&& \text { Supplies } & \text { Supplies Expense } \\\end{array}$