A partial adjusted trial balance follows for Nolet Ltd. at January 31, 2018. The company's fiscal year end is December 31 and it makes adjustments monthly. It has already recorded any required adjusting journal entries for the month of January and the amounts shown below are correct.

Instructions
(a) If $1,600 was received in December for services to be performed in January, and all of these services were performed as expected in January, what was the balance in Unearned Revenue at January 1? Assume there were no other transactions that affected Unearned Revenue during this period.
(b) If the amount in the Depreciation Expense account is the depreciation for the month of January, when was the equipment purchased? Assume that there have been no purchases or sales of equipment since this original purchase and that Nolet uses the straight-line method of depreciation.
(c) If the amount in Insurance Expense is the amount of the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium (amount paid for the policy) and when was the policy purchased? (Hint: Use the prepaid insurance amount at January 31 and monthly insurance expense to determine how many months of insurance coverage remain. Once you know that, you can work backwards to determine the total amount paid for the policy and when.)
(d) If the amount in Supplies Expense is the amount of the January 31 adjusting entry, and $750 of supplies were purchased in January, what was the balance in Supplies on January 1? (Hint: Prepare the adjusting journal entry for this transaction, post to the Supplies and Supplies Expense T accounts, and work backwards to determine the opening balance.)
(e) If $100 of income tax was paid in January, what was the balance in Income Tax Payable at January 1?
Prepare adjusted trial balance.

Transcribed Image Text:

NOLET LTD Adjusted Trial Balance (partial) January 31, 2018 Debit Credit Supplies $ 700 Prepaid insurance 1,200 Equipment Accumulated depreciation-equipment Income tax payable Unearned revenue Service revenue Depreciation expense Insurance expense 7,200 3,o0o 150 75o 2.000 120 400 950 100 Supplies expense Income tax expense