# Question & Answer: The partial adjusted trial balance of DAYBREAK Company at January 31, 2017, shows the following……

The partial adjusted trial balance of DAYBREAK Company at January 31, 2017, shows the following.

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Question & Answer: The partial adjusted trial balance of DAYBREAK Company at January 31, 2017, shows the following……
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DAYBREAK COMPANY

January 31, 2017

Debit Credit

Supplies…………………………………………………………………………………..          \$ 6,300

Prepaid Insurance……………………………………………………………………..               9,800

Salaries and Wages Payable………………………………………………………….                                                    \$5,200

Unearned Revenue…………………………………………………………………….                                                       5,000

Supplies Expense……………………………………………………………………….               3,800

Insurance Expense……………………………………………………………………..               1,400

Salaries and Wages Expense………………………………………………………….            11,200

Service Revenue………………………………………………………………………..                                                    14,000

Instructions

Answer the following questions, assuming the year begins January 1.

If the amount in Supplies Expense is the January 31 adjusting entry, and \$4,100 of supplies was purchased in January, what was the balance in Supplies on January 1?

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 and when was the policy purchased?

If \$12,000 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2016?

If \$10,400 was received in January for services performed in January, what was the balance in Unearned Revenue at December 31, 2016?

1) CALCULATE BEGINNING BALANCE OF SUPPLIES :

 AMOUNT Ending balance 6300 Add : Supplies expenses 3800 Less: Supplies purchased (4100) Beginning balance on jan 1 6000

2) Insurance policy total amount was (9800+1400) = 11200

This policy is purchased on dec 15 2015

so Insurance exp per month is (11200/12=933.33)

insurance expenses on dec 15 to jan 31 is (933.33*1.5) =1400

prepaid insurance expenses is 9800

3) calculate beginning balance of salary payable

 Amount Ending salary & wages payable 5200 Add: Salary Paid 12000 Less: Salary expenses (11200) Beginning salary payable on dec 31 2016 6000

d) Calculate unearned revenue balance on dec 31 2016

 Amount Ending balance 5000 ADD: revenue earned 14000 Less: cash received (10400) Balance on dec 31,2016 8600