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Problem 1: Failure to record the supplies used during the year would result in which of the following?
a. Total assets being understated
b.Net income being understated
c. Stockholders' equity being overstated
d. An overstatement of liabilities
Problem 2: Windstar Corp. purchased supplies at a cost of $6,000 during the year. At December 31, supplies on hand are $1,400. Supplies expense for the year was $5,200. How much were supplies on hand at January 1?
a.$11,200
b.$1,400
c.$600
d.$2,200
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