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.

a$.$ If the amount in supplies expense represents the January $31$ adjustment for the supplies used in January, and $$6,200$ worth of supplies were purchased during January, what was the January $1$ beginning balance of supplies?

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 $1,$ 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?