During Bruce Company's First Year of Operations, the Company Purchased

question 6

Multiple Choice

During Bruce Company's first year of operations, the company purchased $2,300 of supplies. At year-end, a physical count of the supplies on hand revealed that $825 of unused supplies were available for future use. How will the related adjusting entry affect the company's financial statements?

• A)Expenses will increase and assets will decrease by $1,475.
• B)Assets and expenses will both increase by $825.
• C)Expenses and assets will both increase by $1,475.
• D)The related adjusting entry has no effect on net income or the accounting equation.

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