PS_02_Solution_(APSCW_F2009)

PS_02_Solution_(APSCW_F2009) - FINANCIALACCOUNTING...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
BUSI W3013 Solution to Problem Set 02 | Page 1 F INANCIAL A CCOUNTING BUSI W3013 | F ALL 2009 S OLUTION TO P ROBLEM S ET 02 P ROFESSOR A NDREW S CHMIDT I. Adjusting Entry Analysis Selected T-account balances for YYZ Company are shown below as of January 31, 2010; accounting adjustments have already been posted but temporary accounts have not been closed. The firm uses a calendar-year accounting period but prepares monthly accounting adjustments. Supplies Supplies Expense 01/31 800 01/31 960 Prepaid Insurance Insurance Expense 01/31 574 01/31 82 Wages Payable Wages Expense 01/31 500 01/31 3,200 Truck Accumulated Depreciation-Truck 01/31 8,700 01/31 2,610 1. If the amount in Supplies Expense represents the January 31 adjustment for the supplies used in January, and $620 worth of supplies were purchased during January, what was the January 1 beginning balance of Supplies? 2. The amount in the Insurance Expense account represents the adjustment made at January 31 for January insurance expense. If the original insurance premium was for one year (12 months), what was the original amount of the premium and on what date did the insurance policy start? 3. If we assume that no beginning balance existed in either Wages Payable or Wages Expense on January 1, how much cash was paid as wages during January? 4. If the truck has no salvage value and a useful life of five years (60 months), what is the monthly amount of depreciation expense and how many months has YYZ owned the truck?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
BUSI W3013 Solution to Problem Set 02 | Page 2 I. Adjusting Entry Analysis: SOLUTION
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/27/2011 for the course BUSINESS 101 taught by Professor S during the Spring '10 term at Columbia College.

Page1 / 5

PS_02_Solution_(APSCW_F2009) - FINANCIALACCOUNTING...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online