Beginning Balance 1500 Office Supplies Expensed 6000 Ending

1 1 Beginning Balance 1500 Office Supplies Expensed 6000 Endin

Calculate the amount of office supplies purchased based on the beginning balance, expenses, and ending balance. Given the beginning balance of office supplies is $1,500, the office supplies expensed during the period is $6,000, and the ending balance is $2,000. Determine the amount of supplies purchased during this period.

Paper For Above instruction

The processes of accounting for office supplies involve tracking beginning balances, purchases, and ending balances to accurately represent the company's resources. In this scenario, the company starts with a beginning balance of $1,500 in office supplies. During the period, the company expensed $6,000 worth of supplies, which reflects the portion of supplies used up or consumed during the period. The closing balance indicates that, at the end of the period, $2,000 worth of supplies remains on hand. To determine the amount of supplies purchased during this period, we apply the fundamental accounting equation related to inventory changes:

Beginning Balance + Purchases - Supplies Expensed = Ending Balance

Rearranged to solve for purchases:

Purchases = Ending Balance + Supplies Expensed - Beginning Balance

Substituting the given numbers:

Purchases = $2,000 + $6,000 - $1,500 = $6,500

Therefore, the company purchased $6,500 worth of office supplies during this period. This calculation confirms that although a significant amount of supplies was expensed ($6,000), the company also replenished some supplies or had purchases amounting to $6,500 to arrive at the ending balance of $2,000.

References

  • Accountants' Handbook, Vol. 1: Financial Accounting (Kieso, Weygandt, & Warfield, 2019)
  • Financial Accounting Theory and Practice (Warren, Reeve, & Fess, 2020)
  • Introduction to Financial Accounting (Anthony & Reece, 2017)
  • Intermediate Accounting (Kieso, Weygandt, & Young, 2021)
  • Accounting Principles (Horngren, Sundem, & Elliott, 2018)
  • Financial Reporting & Analysis (Palepu & Healy, 2019)
  • Principles of Accounting (Wild, 2019)
  • Managerial Accounting (Garrison, Noreen, & Brewer, 2018)
  • Corporate Financial Reporting & Analysis (Fraser & Ormiston, 2020)
  • Fundamentals of Accounting (Schroeder, Clark, & Cathey, 2019)

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