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e. - The Decorating Supplies account started the year with a balance of $6,540. During 2010, the company purchased $1,250 in additional decorating supplies, which was added to the account. An İnventory count at the end of the year show Paula's Interiors had $1,610 of decorating supplies on hand. Assets Liabilities Equity Decorating Supplies -6,180 Decorating Supplies Expense -6,180 %3D Show me how to do this step: The company started with $6,540 Decorating Supplies on hand and bought $1,250 more during the accounting period.During this accounting period, the company also used the decorating supplies and ended up with a final balance of $1,610. This means they used a total of $6,540 + $1,250 - $1,610 = $6,180 in decorating supplies in the course of this accounting period. The Decorating Supplies account decreases by $6,180 and Decorating Supplies Expense increases by $6,180. Remember that increasing expense accounts decreases total equity so the effect on Decorating Supplies Expense decreases total equity.

e. - The Decorating Supplies account started the year with a balance of $6,540. During 2010, the company purchased $1,250 in additional decorating supplies, which was added to the account. An İnventory count at the end of the year show Paula's Interiors had $1,610 of decorating supplies on hand. Assets Liabilities Equity Decorating Supplies -6,180 Decorating Supplies Expense -6,180 %3D Show me how to do this step: The company started with $6,540 Decorating Supplies on hand and bought $1,250 more during the accounting period.During this accounting period, the company also used the decorating supplies and ended up with a final balance of $1,610. This means they used a total of $6,540 + $1,250 - $1,610 = $6,180 in decorating supplies in the course of this accounting period. The Decorating Supplies account decreases by $6,180 and Decorating Supplies Expense increases by $6,180. Remember that increasing expense accounts decreases total equity so the effect on Decorating Supplies Expense decreases total equity.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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It told me the answer after getting it incorrect but didn’t tell me how to calculate it for future problems similar to this concept. Can someone help me please?
QUANTUM Accounting Equation Accounting Journal IAccounting Ledger Accounting Equation e. - The Decorating Supplies account started the year with a balance of $6,540. During 2010, the company purchased $1,250 in additional decorating supplies, which was added to the account. An İnventory count at the end of the year showed Paula's Interiors had $1,610 of decorating supplies on hand. Assets Liabilities Equity %3D Decorating Supplies -6,180 Decorating Supplies Expense -6,180 %3D + Show me how to do this step: The company started with $6,540 c Decorating Supplies on hand and bought $1,250 more during the accounting period.During this accounting period, the company also used the decorating supplies and ended up with a final balance of $1,610. This means they used a total of $6,540 + $1,250 - $1,610 = $6,180 in decorating supplies in the course of this accounting period. The Decorating Supplies account decreases by $6,180 and Decorating Supplies Expense increases by $6,180. Remember that increasing expense accounts decreases total equity so the effect on Decorating Supplies Expense decreases total equity. Ask a Question Analyzing the Event O Why do we need adjusting entries? O How did this affect the company's assets? Did this cause liabilities or equity to change? How did you get $6,180 as the amount to adjust? How do I check if this transaction kept the accounting equation in balance? Is this an adjustment for an accrued expense or a deferred expense? Potential Misconceptions O Does recording an expense always mean assets are reduced? Why don't you adjust the Decorating Supplies account as the supplies are used?
Transcribed Image Text:QUANTUM Accounting Equation Accounting Journal IAccounting Ledger Accounting Equation e. - The Decorating Supplies account started the year with a balance of $6,540. During 2010, the company purchased $1,250 in additional decorating supplies, which was added to the account. An İnventory count at the end of the year showed Paula's Interiors had $1,610 of decorating supplies on hand. Assets Liabilities Equity %3D Decorating Supplies -6,180 Decorating Supplies Expense -6,180 %3D + Show me how to do this step: The company started with $6,540 c Decorating Supplies on hand and bought $1,250 more during the accounting period.During this accounting period, the company also used the decorating supplies and ended up with a final balance of $1,610. This means they used a total of $6,540 + $1,250 - $1,610 = $6,180 in decorating supplies in the course of this accounting period. The Decorating Supplies account decreases by $6,180 and Decorating Supplies Expense increases by $6,180. Remember that increasing expense accounts decreases total equity so the effect on Decorating Supplies Expense decreases total equity. Ask a Question Analyzing the Event O Why do we need adjusting entries? O How did this affect the company's assets? Did this cause liabilities or equity to change? How did you get $6,180 as the amount to adjust? How do I check if this transaction kept the accounting equation in balance? Is this an adjustment for an accrued expense or a deferred expense? Potential Misconceptions O Does recording an expense always mean assets are reduced? Why don't you adjust the Decorating Supplies account as the supplies are used?
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