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Financial Accounting! HELP!?



ORLANDO COMPANY
Adjusted Trial Balance
January 31, 2010

DebitsCredits
Supplies0
Prepaid Insurance1,560
Salaries Payable CREDIT ,200
Unearned Service Revenue CREDIT750
Supplies Expense950
Insurance Expense520
Salaries Expense1,800
Service Revenue CREDIT 2,000

Answer these questions, assuming the year begins January 1.

(a)If the amount in Supplies Expense is the January 31 adjusting entry, and 0 of supplies was purchased in January, what was the balance in Supplies on January 1?

$____________

(b)If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for 1 year, what was the total premium.

$______

When was the policy purchased?
Sept, Oct, Nov, April, May , June All in 2009….

(c)If ,500 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2009?

$ ________

(d)If ,800 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2009?

$__________

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2 Responses to “Financial Accounting! HELP!?”

  1. Stress Because of This Problem on April 23rd, 2011

    a. Supplies on January 1 = $ 1,000
    b. The Total Premium for 1 year = $ 6,240
    The policy purchased : 01 May 2009
    c. Salaries Payable at December 31 2009 = $ 1,900
    d. Unearned Service Revenue at December 31, 2009 : $ 950 ( not sure for point d )

  2. a) If the amount in Supplies Expense is the January 31 adjusting entry, and $650 of supplies was purchased in January, what was the balance in Supplies on January 1?
    x + 650 – 950 = 700

    $1,000
    (b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for 1 year, what was the total premium.
    x – 520 = 1,560
    $2,080

    When was the policy purchased?
    Sept, Oct, Nov, April, May , June All in 2009….
    2,080 / 12 = 173.33……
    1,560 / 173.33….. = 9 months has expired on Jan 31.
    The policy was purchased at the end of April

    (c) If $2,500 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2009?
    1,800 – 1,200 = 600
    2,500 – 600 = 1,900
    $1,900

    (d) If $1,800 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2009?
    2,000 – 1,800 = 200
    $200

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