Choose right answer only

1. On January 1, 2023, Company XYZ's general ledger correctly shows a supply inventory of $500. In 2023, purchases of supplies amounted to $700. A physical count of supplies as of December 31, 2023 shows an ending balance of $400. What is the amount of supplies consumed in 2023? Question options:

$1,100

$700

$1,200

$800

2) Question ABC Inc. provided services worth $40,000 in December 2022 and collected $10,000 in cash during the same month, with the remainder paid in January 2023. Salaries of employees who provided said services in December 2022 amount to $25,000 but are paid in January 2023. According to the principle of linking expenses to income, what would be the gross profit for the month of December 2022? Question options:

Profit of $10,000

Loss of $15,000

Profit of $15,000

Profit of $40,000