This is a partial adjusted trial balance of Marliss Company.

MARLISS COMPANY Adjusted Trial Balance January 31, 2007 Debit Credit Supplies $ 700 Prepaid Insurance 1,560 Salaries Payable $1,200 Unearned Service Revenue 750 Supplies Expense 950 Insurance Expense 520 Salaries Expense 1,800 Service Revenue 2,000 Instructions Answer these questions, assuming the year begins January E.

(a) If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1?

Exercises 197 Prepare adjusting entries.

(SO 4, 5)

Prepare a correct income Statement,

(SO 1, 4, 5, 6)

Analyze adjusted data.

(SO) AS So)

198 CHAPTER 4 Accrual Accounting Concepts

(b) If the amount in Insurance Expense is the January 31 adjusting entry, 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 was paid in January, what was the balance in Salaries Payable at December 31, 2006?

(d) If $1,600 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2006?