Reference no: EM132759663

The Blumer Company entered into the following transactions during Year1.

1. The company was started with $22,000 of common stock issued to investors for cash.

2. The company purchased equipment on July 1 that cost $15,500 cash. The equipment had a five-year useful life and a $1,000 estimated salvage value.

3. There were $700 of supplies purchased on account.

4. Sales on account amounted to $9,500.

5. Cash collections of receivables amounted to $5,500.

6. On October 1, Year1 the company paid $3,600 in advance for a 12-month insurance policy that became effective on October 1.

7. Supplies on hand as of December 31, Year1 amounted to $225.

Problem 1: What would be the balance in the supplies account (asset account) on the 12/31/Year1 balance sheet?