The following lists selected accounts and their adjusted balances for Ramon Company on January 31, 2022.

Instructions

Answer these questions, assuming the year begins January 1.

a. If the amount in Supplies Expense is equal to the January 31 adjustment and $300 of supplies were purchased in January, what was the balance in Supplies on January 1?

b. If the amount in Insurance Expense is equal to the January 31 adjustment and the original insurance premium was for 1 year, what was the total premium and when was the policy purchased?

c. If $2,500 of salaries were paid in January, what was the balance in Salaries and Wages Payable at December 31, 2021?

d. If $1,800 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2021? (Assume that Accounts Receivable had a zero balance on January 1.)

Determine effect of adjustments.

Transcribed Image Text:

Insurance Expense 520 Service Revenue $4,000 Prepaid Insurance Salaries and Wages Expense Salaries and Wages Payable 1,560 Supplies 700 1,800 Supplies Expense 950 Unearned Service 1,060 Revenue 750 %24