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.

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?

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?

c. If we assume that no beginning balance existed in wages payable or wages expense on January1, how much cash was paid as wages during January?

d. If the truck has a useful life of five years, what is the monthly amount of depreciation expense and how many months has Fields owned the truck?

Transcribed Image Text:

Supplies (A) Supplies Expense (E) Jan. 31 Bal. 800 Jan. 31 Bal. 960 Prepald Insurance (A) Insurance Expense (E) Jan. 31 Bal. 574 Jan, 31 Bal. 82 Wages Payable (L) Wages Expense (E) 500 Jan. 31 Bal. Jan. 31 Bal. 3,200 Truck (A) Accumulated Depreciation-Truck (XA) Jan. 31 Bal. 8,700 2,610 Jan. 31 Bal.