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Supplies Expense, Insurance Expense, and Unearned Revenues

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Instructions: Answer the following questions, assuming the year begins January 1.
*See attached file for data

(a) If the amount in Supplies Expense is the January 31 adjusting entry, and $500 of supplies was purchased in January, what was the balance in Supplies on January 1?

(b) 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?
(c) If $3,500 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2009?

(d) If $1,600 was received in January for services performed in January, what was the balance in Unearned Revenues at December 31, 2009?

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The solution explains how to calculate the amount for adjusting entries.

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