Financial Analysis Using Adjusted Account Data Selected T-account balances for Bloomfield Company are shown below as...

Question

Question

Financial Analysis Using Adjusted Account Data Selected T-account balances for Bloomfield Company are shown below as...

Financial Analysis Using Adjusted Account Data
Selected T-account balances for Bloomfield Company are shown below as of January 31, which reflect its accounting adjustments. The firm uses a calendar-year accounting period, but prepares monthly accounting adjustments.

Supplies
Jan. 31 Bal.	900	216	Jan. 31 Bal.

Supplies Expense
Jan. 31 Bal.	960	216	Jan. 31 Bal.

Prepaid Insurance
Jan. 31 Bal.	574	216	Jan. 31 Bal.

Insurance Expense
Jan. 31 Bal.	82	16	Jan. 31 Bal.

Wages Payable
Jan. 31 Bal.	216	700	Jan. 31 Bal.

Wages Expense
Jan. 31 Bal.	3,200	2016	Jan. 31 Bal.

Truck
Jan. 31 Bal.	8,700	2016	Jan. 31 Bal.

Accumulated Depreciation -Truck
Jan. 31 Bal.	2016	2,610	Jan. 31 Bal.

a. If the amount in supplies expense represents the January 31 adjustment for the supplies used in January, and $620 worth of supplies were purchased during January, what was the January 1 beginning balance of supplies?
$Answer

b. The amount in the insurance expense account represents the adjustment made at January 31 for January insurance expense. If the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start?
Amount of the premium $Answer

The policy began on AnswerJune 1July 1August 1September 1October 1November 1 of the previous year.

c. If we assume that no beginning balance existed in either in either wage payable or wage expense on January 1, how much cash was paid as wages during January? $Answer

d. If the truck has a useful life of five years (or 60 months), what is the monthly amount of depreciation expense, and how many months has Bloomfield owned the truck? Answer

months

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Part A

Supplies Expense	960
Add: Supplies (1/31)	900
Less: Supplies purchased	(620)
Supplies (1/1)	$1240

Part B

Monthly premium	x	# of months	=	Total premium
82		12		$984

The policy began on September 1 of the previous year.

Part C

wages expense	3200
wages payable	(700)
Cash paid	$2500

Part D

Number of months truck owned by Bloomfield = 8700/(2610/5) = 17 months

Add a comment

Answer 2

Similar Homework Help Questions

Financial Analysis Using Adjusted Account Data Selected T-account balances for Bloomfield Company are shown below as...

Financial Analysis Using Adjusted Account Data Selected T-account balances for Bloomfield Company are shown below as of January 31, which reflect its accounting adjustments. The firm uses a calendar-year accounting period, but prepares monthly accounting adjustments, Supplies Jan. 31 Bal. 2,700 Supplies Expense Jan. 31 Bal 2,880 Prepaid Insurance Jan. 31 Bal. 1.722 Insurance Expense Jan. 31 Bal. 245 Truck Wages Payable 2,100 Jan. 31 Bal. Wages Expense Jan. 31 Bal. 9,600 Jan. 31 Bal. 26,100 Accumulated Depreciation - Truck...
Financial Analysis Using Adjusted Account Data Selected T-account balances for Bloomfield Company are shown below as...

Financial Analysis Using Adjusted Account Data Selected T-account balances for Bloomfield Company are shown below as of January 31, which reflect its accounting adjustments. The firm uses a calendar-year accounting period, but prepares monthly accounting adjustments. Supplies Jan. 31 Bal 2,700 Supplies Expense Jan. 31 Bal. 2,880 Prepaid Insurance Jan. 31 Bal. 1,722 Insurance Expense Jan. 31 Bal. 246 Wages Payable 2,100 Jan. 31 Bal. Wages Expense Jan. 31 Bal. 9,600 Truck Jan. 31 Bal 21,456 Accumulated Depreciation - Truck...
Selected T-account balances for Fields Company are shown below as of January 31, 2019; adjusting entries...

Selected T-account balances for Fields Company are shown below as of January 31, 2019; adjusting entries have already been posted. The firm uses a calendar-year accounting period but prepares monthly adjustments. Supplies (A) Jan.31 Bal 800 Supplies Expense (E) Jan.31 Bal 960 Prepaid Insurance (A) Jan.31 Bal 574 Insurance Expense (E) Jan.31 Bal 82 Wages Payable (L) 500 Jan.31 Bal Wages Expense (E) Jan.31 Bal 3,200 Truck (A) Jan.31 Bal 8,700 Accumulated Depreciation-Truck (XA) 2,610 Jan.31 Bal (a) If the...

A partial adjusted trial balance of Joy Ltd at Jan 31, 2014, shows the following: Joy...

A partial adjusted trial balance of Joy Ltd at Jan 31, 2014, shows the following: Joy Ltd. Adjusted Trial Balance 31-Jan-14 Debit Credit Supplies 600 Prepaid insurance 2,400 Salaries and wages payable 800 Unearned revenue 1,000 Service revenue 3,000 Supplies expense 950 Insurance expense 2,400 Salaries and wages expense 1,800 Required: Answer the following questions, assuming the company’s fiscal year beings January 1: If the amount in Supplies Expense is the January 31 adjusting entry, and $650 of supplies was...
Exercise 3-07 A partial adjusted trial balance of Marigold Company at January 31, 2020, shows the...

Exercise 3-07 A partial adjusted trial balance of Marigold Company at January 31, 2020, shows the following. Credit MARIGOLD COMPANY ADJUSTED TRIAL BALANCE JANUARY 31, 2020 Debit Supplies $830 Prepaid Insurance 3,180 Salaries and Wages Payable Unearned Service Revenue Supplies Expense 950 Insurance Expense 530 Salaries and Wages Expense 1,930 Service Revenue $930 880 2,130 Answer the following questions, assuming the year begins January 1. If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of...
A partial adjusted trial balance of Swifty Company at January 31, 2020, shows the following. SWIFTY...

A partial adjusted trial balance of Swifty Company at January 31, 2020, shows the following. SWIFTY COMPANY ADJUSTED TRIAL BALANCE JANUARY 31, 2020 Debit Credit Supplies $820 Prepaid Insurance 3,120 Salaries and Wages Payable $920 Unearned Service Revenue 870 Supplies Expense 950 Insurance Expense 520 Salaries and Wages Expense 1,920 Service Revenue 2,120 Answer the following questions, assuming the year begins January 1. If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was...

A partial adjusted trial balance of Sheffield Corp. at January 31, 2019, shows the following. Sheffield...

A partial adjusted trial balance of Sheffield Corp. at January 31, 2019, shows the following. Sheffield Corp. Adjusted Trial Balance January 31, 2019 Debit $ 900 2,400 $ 800 850 Supplies Prepaid Insurance Salaries and Wages Payable Unearned Service Revenue Supplies Expense Insurance Expense Salaries and Wages Expense Service Revenue 900 400 3,000 2,000 Answer the following questions, assuming the year begins January 1. If the amount in Supplies Expense is the January 31 adjusting entry and $1,200 of supplies...
2. The partial adjusted trial balance of Starlight Company at January 31, 2018, shows the following....

2. The partial adjusted trial balance of Starlight Company at January 31, 2018, shows the following. STARLIGHT COMPANY Adjusted Trial Balance January 31, 2018 Debit Credit Supplies............................................................................................... $ 1,800 Prepaid Insurance................................................................................ 5,250 Salaries and Wages Payable.................................................................. $1,675 Accounts Receivable............................................................................ 3,200 Supplies Expense................................................................................. 6,500 Insurance Expense............................................................................... 750 Salaries and Wages Expense................................................................. 8,900 Service Revenue.................................................................................. 13,000 Instructions Answer the following questions, assuming the year begins January 1. If the amount in Supplies...
E3-7 A partial adjusted trial balance of Piper Company at January 31, 2020, shows the following....

E3-7 A partial adjusted trial balance of Piper Company at January 31, 2020, shows the following. PIPER COMPANY ADJUSTED TRIAL BALANCE JANUARY 31, 2020 Credit Debit $ 700 Supplies Prepaid Insurance 2,400 Salaries and Wages Payable $ 800 750 Unearned Service Revenue Supplies Expense Insurance Expense 950 400 Service Revenue 2,000 Instructions Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was...

Adjusting Entries Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below...

Adjusting Entries Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjusting entries have been made: Debit Credit Prepaid insurance $7,460 Supplies 2,730 Office equipment 6,720 Unearned rent revenue 5,730 Salaries expense 3,900 Rent revenue 15,800 Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b....

Financial Analysis Using Adjusted Account Data Selected T-account balances for Bloomfield Company are shown below as...

Homework Answers

Add Answer to:
Financial Analysis Using Adjusted Account Data Selected T-account balances for Bloomfield Company are shown below as...

Post as a guest

Earn Coins