Question

DULLU LUUDUCUDOR Tue Feb 4, 2020,3:12:47 AM (America/Los Angeles-08.00) Question 1 View Policies Current Attempt in Progress Calculate the missing information in each of the following independent situations: Crane Company Larkspur, Co. Supplies on hand, May 31, 2020 $730 Sheridan Company $905 3.005 S730 3,705 $1.255 2,255 Supplies purchased during the year Supplies on hand. May 31, 2021 605 1.655 Supplies used during the year 2.605 e Textbook and Media Save for Late Sunced to Gradebook

Answer 1

Supplies on hand, May 31, 2020 Supplies purchased during the year Supplies on hand, May 31, 2021 Supplies used during the year Crane Company $ 730 $ 3,705 605 3,830 Sheridan Company $ 905 $ 3,005 $ 1,305 2,605 $ S $ $ Larkspur, Co. 1,255 2,255 1,655 1,855

• Supplies are stock of consumable items such as printer cartridges, cleaning items, stationary items, etc.
• When supplies are purchased, they are debited to the supplies expense account.
• Once consumed they are written off as supplies expense.
• Supplies at the beginning of the year + Supplies purchased during the year = Supplies available during the year
• Supplies available during the year - Supplies as at the end of the year = Supplies used during the year.
• Supplies used during the year is the supplies expense which appears in the income statement.

• Beginning supplies = supplies on hand, May 31, 2020. This is the ending balance of supplies at the end of the previous year. This balance is the beginning balance of supplies for the current year.
• Ending supplies = supplies on hand, May 31, 2021

Crane Company

• Supplies used during the year = Beginning supplies + Supplies purchased during the year - Ending supplies = $730 + $3,705 - $605 = $3,830

Sheridan Company

• Ending supplies = Beginning supplies + Supplies purchased during the year - Supplies used during the year = $905 + $3,005 - $2,605 = $1,305

Larkspur, Co.

• Supplies used during the year = Beginning supplies + Supplies purchased during the year - Ending supplies = $1,255 + $2,255 - $1,655 = $1,855