In: Accounting
Exercise 3-07
A partial adjusted trial balance of Skysong Company at January 31, 2020, shows the following.
SKYSONG COMPANY |
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Debit |
Credit |
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Supplies | $850 | |||||
Prepaid Insurance | 3,300 | |||||
Salaries and Wages Payable | $950 | |||||
Unearned Service Revenue | 900 | |||||
Supplies Expense | 950 | |||||
Insurance Expense | 550 | |||||
Salaries and Wages Expense | 1,950 | |||||
Service Revenue | 2,150 |
Answer the following questions, assuming the year begins
January 1.
1. If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1?
2. If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium? When was the policy purchased?
3. If $2,650 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2019?
4. If $1,750 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2019? Assume that there are no accounts receivable.