Entertainment Services USA started the year with $200 of supplies

Question: Entertainment Services USA started the year with $…

Entertainment Services USA started the year with $200 of supplies. During the year the company purchased additional supplies costing $1,200. There was $800 of supplies on hand at the end of the year. The financial statements will report what amounts?

Entertainment Services USA started the year with $200 of supplies. During the year the company purchased additional supplies costing $1,200. There was $800 of supplies on hand at the end of the year. The financial statements will report what amounts?

Income Statement        Balance Sheet
A.    $800                          $600
B.    $600    $800
C.    $600    $200
D. $1,200                          $800
E. $1,200                          $–0–