Question

During its first year of business, XYZ Inc. purchased $1,600 of supplies. By the end of

the year, only $500 of supplies remain in the supply cabinet. Determine the amount to be
reported in the Supplies account in the Adjusted Trial Balance section of the worksheet
prepared on December 31.

Answer 1

$500

Step-by-step explanation:

Since adjusted trial balance is often prepared at the end of an accounting period in which based on the information given the supplies in inventory is on the last day of the accounting period in which only the amount of $500 of supplies was remaining in the supply cabinet, therefore the amount to be

reported in the SUPPLIES ACCOUNT in the Adjusted Trial Balance section of the worksheet

prepared on December 31 will be $500 of supplies remaining in the supply cabinet.