ACCT251E3-7Sol - 2,700 The T account for salaries payable...

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EXERCISE 3-7 (15–20 minutes) (a) Ending balance of supplies. ................................ $ 900 Add: Adjusting entry. .......................................... 950 Deduct: Purchases. ............................................. 850 Beginning balance of supplies. .......................... 1,000 (b) Total prepaid insurance. ...................................... $4,800 ($400 X 12) Amount used (6 X $400). ..................................... 2,400 Present balance. ................................................... 2,400 The policy was purchased six months ago (August 1, 2009) (c) The entry in January to record salary expense was Salaries Expense. ................................................. 1,800 Salaries Payable. .................................................. 900 Cash. ................................................................
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Unformatted text preview: 2,700 The T account for salaries payable is Salaries Payable Paid 900 Beg. Bal. ? January End Bal. 800 The beginning balance is therefore Ending balance of salaries payable. .............. $ 800 Plus: Reduction of salaries payable. ............. 900 Beginning balance of salaries payable. ......... $1,700 (d) Service revenue. ........................................... $2,000 Cash received. ............................................... 1,600 Unearned revenue reduced. ........................ $ 400 Ending unearned revenue January 31, 2010. ................ $ 750 Plus: Unearned revenue reduced. .................................. 400 Beginning unearned revenue December 31, 2009. ....... $1,150...
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ACCT251E3-7Sol - 2,700 The T account for salaries payable...

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