Question $2$:

Supplies expense $500$

Inventory $500$

a$)$ Write a short narrative that explains the transaction that occurred to cause the recording

of the transaction. Provide as much detail as is needed to fully explain what occurred.

b$)$ Explain the effect of this transaction on the company$$s financial position. Specifically,

what is the transaction$$s impact on equity?

c$)$ Detail all assumptions used to come to your conclusions in a and b$.$