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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...

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