A partial adjusted trial balance of Piper Company at January 31, 2014, shows the

Question

A partial adjusted trial balance of Piper Company at January 31, 2014, shows the following. PIPER COMPANY ADJUSTED TRIAL BALANCE JANUARY 31, 2014 Debit Credit Supplies $810 Prepaid Insurance 3,060 Salaries and Wages Payable $910 Unearned Service Revenue 860 Supplies Expense 950 Insurance Expense 510 Salaries and Wages Expense 1,910 Service Revenue 2,110 Answer the following questions, assuming the year begins January 1. IE 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? Beginning balance of supplies $ IE LINK TO TEXT 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? Total premium $ When was the policy purchased? The policy was purchased on July 31, 2013August 31, 2013August 1, 2013 . IE LINK TO TEXT If $2,610 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2013? Beginning balance of salaries and wages payable $ IE LINK TO TEXT If $1,710 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2013? Beginning balance of unearned service revenue $

Explanation / Answer

1. Supplies at beginning + supplies purchased - supplies expense = Supplies at end

Supplies at beginning(January1) = 810 + 950 - 850 = $910

2. Insurance expense for january month = $510

So total premium for 1 year = Expense for 1 month * 12 = 510 * 12 = $6,120

Prepaid insurance on 31st january = $3,060

Number of month premium left = 3060 /510 = 6 months

that means policy was purchased 6 month back that is on 1st august 2013

3. Salaries and wages payable at beginning + salaries and wages expense - salaries paid = salaries and wages payable at end

Salaries and wages payable at beginning(31 december 2013) = 910 + 1,910 - 2,610 = $210

4. Unearned service revenue at beginning + service revenue - amount received for services performed in january = unearned service revenue at end

Unearned service revenue at beginning(31 december 2013) = 860 + 1710 - 2110 = $460

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.