Question

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Carolina mills purchases all supplies form Da Vinci Corporation and all purchases of supplies are made on account. Carolina Mills reported the following activity for the year ended 12/31/2007.

Given the above account activity, what was the amount of supplies expense reported for the year ended 12/31/2007?

A. 25,000 B. 50,000 C. 175,000 D. 200,000 E. 225,000

7a. Carolina Mills purchases all supplies from Da purchases all supplies from Da Vinci Corporation and all purchases of supplies are made on account. Carolina Mills reported the rol account. Carolina Mills reported the following activity for the year ended 12/31/2007. Accounts Payable Da Vinci Supplies Corporation 50,000 25,000 175,000 200,000 25,000 50,000 Given the above account activity, what was the amount of supplies expense reported for the year ended 12/31/2007? A. $25,000 DEBIT CREDIT B. $50,000. (i) Supplies XX C. $175,000. Accounts Payable D. $200,000. (ii) Supplies Expense XX E. $225,000 Supplies XX XX XX (iii) Accounts Payable Cash XX

Answer 1

Supplies					Accounts Payable
Beg. Bal	$   50,000.00	Expense	$ 225,000.00		Cash	$ 175,000.00	Beg. Bal.	$   25,000.00
A/P	$ 200,000.00	End. Bal	$   25,000.00		End. Bal	$   50,000.00	Supplies	$ 200,000.00
	$ 250,000.00		$ 250,000.00			$ 225,000.00		$ 225,000.00

Therefore, Supplies Expense reported =

$ 225,000.00

Journals
Events	Particulars			Debit	Credit
i)	Supplies			$ 200,000.00
	To Accounts Payable				$ 200,000.00
ii)	Supplies Expense			$ 225,000.00
	To Supplies				$ 225,000.00
iii)	Accounts Payable			$ 175,000.00
	To Cash				$ 175,000.00