St.Nick Corporation's Toy-Making Supplies account showed a beginning balance of $200 and supplies purchased of $800.There were $400 of supplies on hand at year-end.The year-end adjustment would include an increase in Toy-Making Supplies Expense for
A) $1,000.
B) $800.
C) $600.
D) $400.

Question

Quizplus · Accepted Answer

The year-end adjustment would be to decrease the supplies account by the amount of supplies on hand ($400) and increase the Toy-Making Supplies Expense account for the amount used during the year ($600). Therefore, the correct answer is (C) $600.

StNick Corporation's Toy-Making Supplies Account Showed a Beginning Balance of $200