Determine the adjustment for supplies


Answer each of the following independent questions concerning supplies and the adjustment for supplies.

(a) The balance in the supplies account, before adjustment at the end of the year, is $2,100. What is the amount of the adjustment if the amount of supplies on hand at the end of the year is $385?

(b) The supplies account has a balance of $675, and the supplies expense account has a balance of $1,310 at December 31, 2007. If 2007 was the first year of operations, what was the amount of supplies purchased during the year?

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Financial Accounting: Determine the adjustment for supplies
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