Adjusting Entries: Supplies Video Lessons

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Problem: Beck Company had $600 of supplies on hand at January 1, 2006. During 2006, supplies costing $6,000 were purchased. At December 31, 2006 a physical count revealed that Beck Company had $400 of supplies on hand. After the adjusting entries for 2006 are recorded and posted, the balances in the supplies account and the supplies expense account would be: A. supplies $6,000 and supplies expense $400 B. supplies $400 and supplies expense $6,400 C. supplies $400 and supplies expense $6,200 D. supplies $400 and supplies expense $6,600 E. supplies $6,200 and supplies expense $6,200

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Problem Details

Beck Company had $600 of supplies on hand at January 1, 2006. During 2006, supplies costing $6,000 were purchased. At December 31, 2006 a physical count revealed that Beck Company had $400 of supplies on hand. After the adjusting entries for 2006 are recorded and posted, the balances in the supplies account and the supplies expense account would be:

A. supplies $6,000 and supplies expense $400

B. supplies $400 and supplies expense $6,400

C. supplies $400 and supplies expense $6,200

D. supplies $400 and supplies expense $6,600

E. supplies $6,200 and supplies expense $6,200

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