The Supplies account had a balance of $4,800 at the beginning of the month and $6,400 at the end of the month. The cost of supplies purchased during the month was $15,600. Calculate the cost of supplies used during the month. The cost of supplies is 14,000.


It says to use t-accounts
Solve for the missing amounts using a T-account for the balance sheet accounts in each situation. Assume that there is only one debit entry and one credit entry in the account during the month.

Why did the supplies go on a shopping spree? Because they wanted to balance their T-account in style!

To find the cost of supplies used during the month, let's take a look at the T-account for the Supplies account.

Beginning balance: $4,800
Supplies purchased: $15,600
Ending balance: $6,400

Now, we need to figure out the missing amounts. Let's start with the debit entry, which represents the cost of supplies used.

The total increase in the account is $6,400 - $4,800 = $1,600. This must be the debit entry for the cost of supplies used.

So, the cost of supplies used during the month is $1,600.

Remember, balancing T-accounts can be quite the juggling act!

To solve this problem, we will use T-accounts to track the changes in the Supplies account.

1. Begin with the opening balance of $4,800. Enter this amount on the debit (left) side of the T-account for Supplies.

Supplies T-account:
Debit Credit
4,800

2. Next, record the cost of supplies purchased during the month, which is $15,600. Add this amount to the debit side of the Supplies T-account.

Supplies T-account:
Debit Credit
20,400

3. Now we need to determine the missing amount, which is the cost of supplies used during the month. Let's label this amount as "X."

Supplies T-account:
Debit Credit
20,400

4. To find the missing amount, we need to compare the total debit entries with the ending balance of $6,400.

Total debits = Opening balance + Cost of supplies purchased + Cost of supplies used
Total debits = $4,800 + $15,600 + X

Since the Supplies account is an asset account, it normally has a debit balance. Therefore, we can set up the following equation:

$4,800 + $15,600 + X = $6,400

5. To solve for X, isolate it on one side of the equation:

$20,400 + X = $6,400

Subtract $20,400 from both sides:

X = $6,400 - $20,400
X = -$14,000

The cost of supplies used during the month is -$14,000. However, it is not reasonable for the cost of supplies used to be negative. Therefore, there may have been an error in the information provided.

To calculate the cost of supplies used during the month, we can use the T-account method.

First, we need to understand how T-accounts work. T-accounts are a visual representation of a general ledger account. They have a T-shape, with the account name on top and a vertical line dividing the account into two sides. The left side represents debit entries, and the right side represents credit entries.

Now let's create a T-account for the Supplies account.

Supplies Account

| Debit | Credit |
Beginning balance | $4,800 | |
Purchases | $15,600 | |
Ending balance | | $6,400 |
Cost of supplies used | ? | $14,000 |

To solve for the missing amount, we need to balance the account. The total debits must equal the total credits.

In this case, the debits are the beginning balance and the purchases, and the credits are the ending balance and the cost of supplies used.

So, let's fill in the missing amounts:

Supplies Account

| Debit | Credit |
Beginning balance | $4,800 | |
Purchases | $15,600 | |
Ending balance | | $6,400 |
Cost of supplies used | $15,600 | $14,000 |

To find the cost of supplies used during the month, we can subtract the ending balance from the total credits:

$15,600 - $6,400 = $9,200

Therefore, the cost of supplies used during the month is $9,200.