Question

A partial adjusted trial balance of Crane Company at January 31, 2021, shows the following.

CRANE COMPANY Adjusted Trial Balance January 31, 2021
		Debit		Credit
Supplies		$2,900
Prepaid Insurance		10,500
Salaries and Wages Payable				$3,400
Unearned Revenue				4,200
Supplies Expense		4,300
Insurance Expense		1,750
Salaries and Wages Expense		7,800
Service Revenue				8,600

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

If the amount in Supplies Expense is the January 31 adjusting entry, and $2,700 of supplies was purchased in January, what was the balance in Supplies on January 1?

Beginning balance of supplies

$

Answer 1

Ending balance of supplies	$                     2,900
(+) Supplies expnese	$                     4,300
(-) Supplies purchased	$                     2,700
Beginning balance of supplies	$                     4,500