Debit Credit Supplies 700 Prepaid Insurance 2,400 Salaries and Wages Payable 800
ID: 2333238 • Letter: D
Question
Debit Credit
Supplies 700
Prepaid Insurance 2,400
Salaries and Wages Payable 800
Unearned Service Revenue 750
Supplies Expense 950
Insurance Expense 400
Salaries and Wages Expense 1,800
Service Revenue 2,000
Answer the following questions , assuming the year beginning January 1 (Please prove an explanation)
(a) If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1?
(b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for 1 year, what was the total premium.
(c) If $2,500 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2009?
(d) If $1,800 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2009?
Explanation / Answer
Answer
-Beginning balance on Jan1 (?) + purchased ($850) – Consumed ($950) = Ending balance ($700)
Balance on jan1 = 700 + 950 – 850 = $800
-Answer = $ 800
Insurance expense = $ 400 is for 1 month.
Insurance is for 1 year (12 months)
Total premium = $ 400 x 12 = $ 4,800
Answer = $ 4,800
A
Salaries & Wages payable ending bal on Jan 31
$ 800.00
B
Salaries paid in Jan
$ 2,500.00
C
Salaries & wages expenses in Income Statement
$ 1,800.00
D = A+B - C
Answer: Balance in Salaries & Wages payable on Dec 31, 2009
$ 1,500.00
A
Unearned Service Revenue ending bal on Jan 31
$ 750.00
B
Cash received for services other than Jan
$ 200.00 [because question says $ 1800 is received for Jan services, while Service revenue shown balance of $ 2000]
D = A+B - C
Answer: Unearned Service revenue balance on Dec 31, 2009
$ 950.00
A
Salaries & Wages payable ending bal on Jan 31
$ 800.00
B
Salaries paid in Jan
$ 2,500.00
C
Salaries & wages expenses in Income Statement
$ 1,800.00
D = A+B - C
Answer: Balance in Salaries & Wages payable on Dec 31, 2009
$ 1,500.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.