Sheldon Company began 2016 with $1,200 in its supplies account. During the year, the company purchased $3,400 of supplies on account. The company paid $3,000 on accounts payable by year end. On December 31, 2016, Sheldon counted $1,400 of supplies on hand. Sheldon’s financial statements for 2016 would show:
A. $1,600 of supplies; $200 of supplies expense
B. $1,400 of supplies; $2,000 of supplies expense
C. $1,400 of supplies; $3,200 of supplies expense
D. $1,600 of supplies; $3,400 of supplies expense
Answer:A
Sheldon Company began 2016 with $1,200 in its supplies account. During the year, the company purchased $3,400 of supplies on account. The company paid $3,000 on accounts payable by year end. On December 31, 2016, Sheldon counted $1,400 of supplies on hand. Sheldon’s financial statements for 2016 would show:
A. $1,600 of supplies; $200 of supplies expense B. $1,400 of supplies; $2,000 of supplies expense C. $1,400 of supplies; $3,200 of supplies expense D. $1,600 of supplies; $3,400 of supplies expense