eBook Calculator Office Supplies Faberton, Inc. purchases office supplies once a month and prepares monthly financial statements. The asset account Office Supplies on Hand has a balance of $1,300 on May 1. Purchases of supplies during May amount to $1,100. Supplies on hand at May 31 amount to $920. Required: 1. Identify and analyze the effect of the adjustment on May 31. Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry and leave the amount box blank. If the effect on a financial statement item is negative, I.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Stockholders' Assets HAPTER 4 Contato Liabilities + Equity Revenues 2. What will be the effect on net income for May if this adjustment is not recorded? Net income for the month of May would be by if this adjustment were not recognized because expenses would be