Question

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

Wages Payable

700 Jan 31 Bal

Supplies Expense

Jan 31 Bal 960

Wages Expense

Jan 31 Bal 3,200

Prepaid Insurance

Jan 31 Bal 574

Truck

Jan 31 Bal 8,700

Insurance Expense

Jan 31 Bal 82

Accumulated Depreciation -Truck

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

Answer 1