Selected T-account balances for Smith & Johnson are shown below as of January 31. Adjusting entries have already been posted. The firm uses a calendar-year accounting period but prepares monthly adjustments.

Required
a. During January, $2,000 worth of supplies were purchased. If the amount in Supplies Expense represents the January 31 adjustment for the supplies used in January, what was the January 1 beginning balance of Supplies?
b. The insurance premium purchased was valid for one year. The amount in the Insurance Expense account represents the adjustment made at January 31 for January insurance expense. What was the amount of the premium and on what date did the insurance policy start?
c. No beginning balance existed in Wages Payable or Wages Expense on January 1. How much cash was paid as wages during January?
d. The truck has a useful life of five years, what is the monthly amount of depreciation expense and how many months has Smith & Johnson owned the truck?

Question

Selected T-account balances for Smith & Johnson are shown below as of January 31. Adjusting entries have already been posted. The firm uses a calendar-year accounting period but prepares monthly adjustments.
  
Required
a. During January, $2,000 worth of supplies were purchased. If the amount in Supplies Expense represents the January 31 adjustment for the supplies used in January, what was the January 1 beginning balance of Supplies?
b. The insurance premium purchased was valid for one year. The amount in the Insurance Expense account represents the adjustment made at January 31 for January insurance expense. What was the amount of the premium and on what date did the insurance policy start?
c. No beginning balance existed in Wages Payable or Wages Expense on January 1. How much cash was paid as wages during January?
d. The truck has a useful life of five years, what is the monthly amount of depreciation expense and how many months has Smith & Johnson owned the truck?

Quizplus · Accepted Answer

The Answer of Selected T-account balances for Smith & Johnson are shown below as of January 31. Adjusting entries have already been posted. The firm uses a calendar-year accounting period but prepares monthly adjustments.
  
Required
a. During January, $2,000 worth of supplies were purchased. If the amount in Supplies Expense represents the January 31 adjustment for the supplies used in January, what was the January 1 beginning balance of Supplies?
b. The insurance premium purchased was valid for one year. The amount in the Insurance Expense account represents the adjustment made at January 31 for January insurance expense. What was the amount of the premium and on what date did the insurance policy start?
c. No beginning balance existed in Wages Payable or Wages Expense on January 1. How much cash was paid as wages during January?
d. The truck has a useful life of five years, what is the monthly amount of depreciation expense and how many months has Smith & Johnson owned the truck?

Selected T-Account Balances for Smith & Johnson Are Shown Below