The December 31, 2010 worksheet for Fran's Fine Dining showed the following amounts related to the Supplies Expense account: (a). In the Trial Balance debit column: $745
(b)) In the Adjustments debit column: $125
(c)) In the Adjusted Trial Balance debit column: $870
What is the proper balance in the Supplies Expense account on January 1, 2011, after all closing entries for 2010 have been posted, but before any 2011 transactions are recorded?

Question

Quizplus · Accepted Answer

The Supplies Expense account is a temporary account that is closed at the end of the accounting period. Therefore, its balance on January 1, 2011, after closing entries, would be $0.

The December 31, 2010 Worksheet for Fran's Fine Dining Showed