Prepaid Insurance 1,560 Salaries and Wages Payable $ 1,060 Unearned Service Revenue 750 Supplies Expense 950 Insurance Expense 520 Salaries and Wages Expense 1,800 Service Revenue 4,000
Instructions Answer these questions , assuming the year begins January 1 .
( a ) If the amount in Supplies Expense is the January 31 adjusting entry , and
$ 300 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 and
when was the policy purchased ?
( c ) If $ 2,500 of salaries was paid in January , what was the balance in Salaries and
Wages Payable at December 31 , 2013 ?