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Exercise+3-7

Exercise+3-7 - C Salaries Payable If \$2,700 of salaries...

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E 3-7 Analyze Adjusted Data Safin Company Adjusted Trial Balance January 31, 2010 Debit Credit Supplies 900 Prepaid Insurance 2,400 Salaries Payable 800 Unearned Revenue 750 Supplies Expense 950 Insurance Expense 400 Salaries Expense 1,800 Service Revenue 2,000 Totals 6,450 3,550 Note that this is a partial trial balance A. Supplies Supplies ???? What was the beginning balance? 850 Supplies Purchased during January 950 Supplies used during January, adjusting entry 900 Ending Balance, January 31 Calculating backwards to the beginning of the month, we can determine the beg. Balance 900 + 950 - 850 = \$1,000 Check: Beginning Balance 1,000 Plus: Purchases 850 Subtotal 1,850 Minus: Used (950) Ending Balance 900 B: Insurance Prem. Monthly expense 400 Annual Expense 4,800 Prepaid Ins @ 1/31 2,400 Half of policy has been expensed, policy period must have started on August 1, 2009.
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Unformatted text preview: C. Salaries Payable If \$2,700 of salaries were paid in January, the journal entry must have been: Salaries Expense 1,800 Salaries Payable 900 Cash 2,700 Salaries Payable ???? What was the beginning balance? 900 Salaries Paid from above journal entry 800 Ending Balance, January 31 Calculating backwards to the beginning of the month, we can determine the beg. Balance 800 + 900 = 1,700 D. Unearned Revenue Total Service Revenue 2000 Cash Received 1600 400 Unearned Revenue ???? What was the beginning balance? 400 Unearned Revenue earned during January 750 Ending Balance, January 31 Calculating backwards to the beginning of the month, we can determine the beg. Balance 750 + 400 = 1,150 Unearned Revenue earned during January...
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