If the amount in Supplies Expense is the January 31 adjusting entry, and $2,400 of supplies was purchased in January, what was the balance in Supplies on January 1?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A partial adjusted trial balance of Pharoah Company at January 31, 2021, shows the following.

PHAROAH COMPANY
Adjusted Trial Balance
January 31, 2021
    Debit   Credit
Supplies   $2,000    
Prepaid Insurance   10,500    
Salaries and Wages Payable       $1,800
Unearned Revenue       3,300
Supplies Expense   3,800    
Insurance Expense   1,750    
Salaries and Wages Expense   7,000    
Service Revenue       8,300

Answer the following questions, assuming the year begins January 1.

(a)

 
 
If the amount in Supplies Expense is the January 31 adjusting entry, and $2,400 of supplies was purchased in January, what was the balance in Supplies on January 1?

Beginning balance of supplies  
 
 
 
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(b)

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