Ask Experts Questions for FREE Help !
Ask
    girlygoth91's Avatar
    girlygoth91 Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Jan 21, 2012, 10:09 AM
    Calculating supplies balance
    The following information relates to the supplies account of ABC Company:

    January 1, 2005 December 31, 2005

    Supplies ? 38,000

    ABC Company reported supplies expense of $23,000 in its 2005 income statement and purchased $17,000
    Of supplies during 2005.

    Calculate ABC Company's supplies balance at January 1, 2005. Do not use decimals in your answer.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Jan 21, 2012, 01:46 PM
    Since you know your ending amount you need to work backward to get your beginning amount.

    Since you had a purchase to get your ending amount you need to back out the purchase amount, then add back in your expense amount and you will have your beginning amount. So:
    Ending amount - purchases + expenses = beginning balance.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

When a firm purchases supplies for use in its business, and the cost of the supplies [ 2 Answers ]

13. When a firm purchases supplies for use in its business, and the cost of the supplies purchased is recorded as an asset, the following adjustment to recognize the cost of supplies used will probably be required: A. Dr Supplies Cr Accounts payable B. Dr Supplies Cr Supplies expense C. Dr...

Used $100 of office supplies. How does this effect the balance sheet? [ 1 Answers ]

Balance in supplies [ 3 Answers ]

I was given a partial adjusted trial for a company, if the supplies expense is the January 31 adjusting entry, and $510 of supplies was purchased in January, what was the balance in Supplies of January 1? What's on the Trial Balance is Supplies $818, Supplies Expense $923... So what I did was add...

Where does supplies bought on credit go on the Trial Balance sheet? [ 1 Answers ]

If office supplies were bought by credit card, where does the transaction go on the trial balance sheet, on the debit or credit side? If office supplies are bought with a credit card where does the transaction go on a trial balance sheet, in the debit column or in the credit column?

View more questions Search