AE3-11 A partial adjusted trial balance of Sila Company at January 31, 2010, sho

Question

AE3-11


A partial adjusted trial balance of Sila Company at January 31, 2010, shows the following.

SILA COMPANY
Adjusted Trail Balance
January 31, 2010
Debit Credit
Supplies $867
Prepaid Insurance 2,526
Salaries Payable $758
Unearned Revenue 768
Supplies Expense 966
Insurance Expense 421
Salaries Expense 1,751
Service Revenue 1,994

Instructions

Answer the following questions, assuming the year begins January 1.

(a) If the amount in Supplies Expense is the January 31 adjusting entry, and $535 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 one year, what was the total premium and when was the policy purchased?
Total premium $ Purchase date

(c) If $3,494 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2009?


(d) If $1,639 was received in January for services performed in January, what was the balance in Unearned Revenue at December 31, 2009?

Explanation / Answer

(a)Supplies Expense = Opening Supplies + Purchases - Closing Supplies. Substituting the values, 966 = Opening Supplies +535 -867 Opening Supplies = 966-535+867 Opening Supplies = 1298 (b ) Insurance Premium paid 2526 + 421=2947 Number of years of the plicy = 2947 /421=7 (c )Salaries payable = $1751

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