E2-30. Financial Analysis Using Adj usted Account Data L01, 2, 7 Selected T-account balances for Bloomfield Company are shown below as of January 3 1, which reflect ~o ... .. ., its accounting adjustments. The firm uses a calendar-year accounting period but prepares monthly ac- •·~
counting adjustments.
Jan. 31 Bal.
Supplies 900 I Prepaid Insurance Jan. 31 Bal. 5741 Wages Payable 1700 Jan. 31 Bal.
Truck Jan. 31 Bal. 8,700 I Supplies Expense Jan. 31 Bal. 960 I Insurance Expense Jan. 31 Bal. 821 Wages Expense Jan. 31 Bal. 3,200 I Accumulated Depreciation-Truck 12,610 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 I 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 either wages payable or wages expense on January I, how much cash was paid as wages during January?

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?