Acct301 ch.3 excercise

Acct301 ch.3 excercise - Exercise1 Exercise1

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Exercise 1 Exercise 1 E.3-7.  A partial adjusted trial balance of Piper Co at January 31, 2005 shows  the following :                  Debit             Credit Supplies                             $    700 Prepaid Insurance              $ 2,400 Salaries Payable                                      $    800 Unearned Revenue                                 $     750 Supplies Expense               $    950 Insurance Expense             $    400 Salaries Expense                $ 1,800 Service Revenue                                     $  2,000 Answer the following questions, assuming the year begins January 1. a. If the amount in Supplies Exp is the Jan’31 adjusting entry and $ 850 of  supplies was purchased in Jan what was the balance in Supplies on  Jan’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. c. If $ 2,500 of salaries was paid in January, what was the balance in  Salaries payable at December 31, 2004. d.If $ 1,600 was received in Jan for services performed in Jan, what was the 
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Answer of Exercise 1 Answer of Exercise 1 a. Ending balance of supplies           $ 700     + Adjusting entry                             950     - Purchases                                    _850     Beginning balance of supplies          800 b.Total prepaid insurance (400 x 12)        $  4,800      Amount used (6 x $ 400)                       _  2,400     Present balance                                        2,400     The policy was purchased six months ago (Augt 1,2004) c. The entry in January to record salary expense was     Salaries Expense            1,800     Salaries Payable                700            Cash                                   2,500
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Answer of Exercise 1 Answer of Exercise 1 c. continued…     The beginning balance of Salaries Payable :     Ending balance of salaries payable       $    800     + Reduction of salaries payable            _    700     Beginning balance of salaries payable     1,500 d. Service revenue                            $ 2,000     Cash received                                _ 1,600
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This note was uploaded on 04/19/2010 for the course ACCT ACCT301 taught by Professor Acct301 during the Spring '10 term at 東京国際大学.

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Acct301 ch.3 excercise - Exercise1 Exercise1

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