Question

the office supplies account started the year with a $4,000 balance. during the year, the company purchased supplies for $13,400, which was added to the office supplies account. the inventory of supplies available at december 31 totaled $2,554.

Answer 1

To determine the amount of office supplies used during the year, we need to calculate the difference between the beginning balance, purchases, and ending inventory.

Office supplies available = Beginning balance + Purchases - Ending inventory

Office supplies available = $4,000 + $13,400 - $2,554

Office supplies available = $14,846

The amount of office supplies used during the year is therefore:

Office supplies used = Office supplies available - Beginning balance

Office supplies used = $14,846 - $4,000

Office supplies used = $10,846

Therefore, the company used $10,846 worth of office supplies during the year

Answer 2

To set up a T-account balance sheet for a bank, list the assets (reserves, government bonds, and loans) and the liabilities (deposits). To calculate net worth, subtract liabilities from assets.

Step-by-step explanation:

To provide an answer for the student's queries regarding setting up a T-account balance sheet and calculating a bank's net worth, we need to understand the fundamental accounting equation: Assets = Liabilities + Equity (Net Worth). In this scenario, the bank's assets are the reserves, government bondsTo set up a T-account balance sheet for the bank, we need to list the assets and liabilities. The bank's assets include the reserves ($50), government bonds ($70), and loans ($500). The bank's liabilities include the deposits ($400). To calculate the bank's net worth, we subtract the liabilities from the assets. In this case, the net worth is $220 ($620 - $400).