Question

At the beginning of May, Golden Gopher Company reports a balance in Supplies of $380. On May 15, Golden Gopher purchases an additional $2,100 of supplies for cash. By the end of May, only $180 of supplies remains.

Calculate the balance after adjustment on May 31 of Supplies and Supplies Expense.

Answer 1

Supplies $180

Supplies expense $2300

Step-by-step explanation:

Changes between the opening and closing balance of the supplies account is as a result of purchases and use of supplies. When supplies are purchased, it increases the account balance while the use of supplies reduces it.

Let the cost of supplies used during the period be y

$380 + $2100 - y = $180

y = $380 + $2100 - $180

y = $2300

The balance in the supplies account on May 31 after adjustment is $180 while that of the supplies expense account is $2300.