Moore General Store purchased office supplies on account during the month of March for $5,000. Payment for the supplies will be made in April. On March 1, the balance in the supplies account was $350. On March 31, supplies on hand amounted to $310. What amount should appear on the company's March 31 balance sheet as Supplies, and what amount should appear on the company's March income statement as Supplies Expense, respectively? Select one: a. $310, $5,350 b. $310, $5,040 c. $350, $5,040 d. $350, $5,000 e. $310, $5,000

Question

Delacruz

Business

9 June, 01:23

Moore General Store purchased office supplies on account during the month of March for $5,000. Payment for the supplies will be made in April. On March 1, the balance in the supplies account was $350. On March 31, supplies on hand amounted to $310. What amount should appear on the company's March 31 balance sheet as Supplies, and what amount should appear on the company's March income statement as Supplies Expense, respectively? Select one: a. $310, $5,350 b. $310, $5,040 c. $350, $5,040 d. $350, $5,000 e. $310, $5,000

+3

Answers (1)

Know the Answer?

Lisa Daniel · Answer 1

Option (b) is correct.

Explanation:

Given that,

During March, office supplies purchased on account = $5,000

On March 1, the balance in the supplies account = $350

On March 31, supplies on hand = $310

Therefore,

$310 should appear on the company's March 31 balance sheet as Supplies.

Company's March income statement as Supplies Expense:

= Supplies, as on March 1 + Purchases - Supplies, as on March 31

= $350 + $5,000 - $310

= $5,040