MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VER Exercise 311 A

MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VER Exercise 3-11 A partial adjusted trial balance of Gehring Company at January 31, 2017, shows the following. GEHRING COMPANY Adjusted Trial Balance January 31, 2017 Debit Credit $ 900 2,400 Supplies Prepaid Insurance Salaries and Wages Payable Unearned Service Revenue Supplies Expense Insurance Expense Salaries and Wages Expense Service Revenue $900 750 800 400 2,700 2,500 Answer the following questions, assuming the year begins January 1. If the amount in Supplies Expense is the January 31 adjusting entry, and $1,1,00 of supplies was purchased in January, what was the balance in Supplies on January 1 Supplies balance g if the amount in Insurance Expense is the January 31 adjusting entry, and the orlginal Insurance premium was for one year, what was the total premium and when was purchased? A Rghts Reserved A Dision of

Solution

Answer to Part a:

Supplies, January 31 = Supplies, January 1 + Supplies Purchased – Supplied used
$900 = Supplies, January 1 + $1,100 - $800
Supplies, January 1 = $600

Answer to Part b:

Prepaid Insurance, January 31 = Prepaid Insurance, January 1 + Insurance premium paid - Insurance expired
$2,400 = $0 + Insurance premium paid - $400
Insurance premium paid = $2,800

Answer to Part c:

Salaries and Wages Payable, Jan 31, 2017 = Salaries and Wages Payable, Dec 31, 2016 + Salaries and Wages accrued – Salaries paid
$900 = Salaries and Wages Payable, Dec 31, 2016 + $2,700 - $3,500
Salaries and Wages Payable, Dec 31, 2016 = $1,700