January 20-2011 - EXERCISE 3-7(a Ending balance of supplies...

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

View Full Document Right Arrow Icon
EXERCISE 3-7 (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. ................................................................ 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
Background image of page 1

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

View Full DocumentRight Arrow Icon
EXERCISE 3-7 (Continued) (d) Service revenue. ...........................................
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 04/29/2011 for the course ACCT 3010 taught by Professor John during the Spring '11 term at University of Minnesota Duluth.

Page1 / 4

January 20-2011 - EXERCISE 3-7(a Ending balance of supplies...

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