1000 prepaid insurance

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: repaid Insurance ....................................................................... 1,000 5. Supplies Expense ($1,600 – $500) ..................................................... 1,100 Supplies ........................................................................................ 1,100 EXERCISE 3-7 ( (a) Ending balance of supplies Add: Adjusting entry Deduct: Purchases Beginning balance of supplies (b) Total prepaid insurance Amount used (6 X $400) Present balance $700 950 850 $800 $4,800 2,400 $2,400 ($400 X 12) The policy was purchased six months ago (August 1, 2013) (c) The entry in January to record salary and wages expense was Salaries and Wages Expense ................................ Salaries and Wages Payable ................................. Cash ................................................................... 1,800 700 2,500 The “T” account for salaries payable is Salaries and Wages Payable Paid 700 Beg. Bal. ? January End Bal. 800 The beginning balance is therefore Ending balance of salaries and wages payable Plus: Reduction of salaries and wages payable Beginning balance of salaries and wages payable Service revenue Cash received Unearned revenue reduced $2,000 1,600 $ 400 Ending unearned revenue January 31, 2014 Plus: Unearned revenue reduced Beginning unearned revenue December 31, 2013 (d) $ 800 700 $1,500 $ 750 400 $1,150 EXERCISE 3-10 (a) 1. Aug. 31 Insurance Expense ($4,500 X 3/12) ................................................. 1,125 Prepaid In...
View Full Document

This document was uploaded on 03/26/2014.

Ask a homework question - tutors are online