Question b)

If the amount in insurance expense is the July adjusting entry, and the original insurance premium was for 1 year, what was the total premium and when was the policy purchased?

Total premium $. ??

Purchase date(1 November 2015/ 1 December 2015/ 1 April 2015/ 1 July 2015/ 1 October 2015)

This is a partial adjusted trial balance of Darcy Designs Pty Ltd. Darcy Designs Pty Ltd Adjusted trial balance (partial) as at 31 July 2016 No. Account name Debit Credit 110 Supplies $1,450 112 Prepaid Insurance 2,280 212 Salaries Payable $1,520 213 Service Revenue Received in Advance 1,130 400 Service Revenue 2,720 500 Salaries Expense 7,620 505 Supplies Expense 1,250 515 Insurance Expense 760 Answer the following questions, assuming the year begins on 1 July. (Hint: Reconstruct the T accounts to help answer these questions. ) (a) Your answer is correct. If the amount in supplies expense is the 31 July adjusting entry, and $1,440 of supplies was purchased in July, what was the balance in supplies on 1 July? Supplies balance 1 July 1,260