Peters Pizza started the month with $500 worth of supplies. During the month, Peters Pizza purchased an

Question:

Peter’s Pizza started the month with $500 worth of supplies. During the month, Peter’s Pizza purchased an additional $300 worth of supplies. At the end of the month, $175 worth of supplies remained unused. Give the amount that would appear on the income statement for the month for supplies expense and the amount that would appear on the balance sheet at the end of the month as supplies on hand. Is the needed adjustment related to an accrual or a deferral?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...