A partial adjusted trial balance of the Cordero Company at January 31, 1996, shows (the following:

Instructions \begin{tabular}{lrr}
\multicolumn{1}{c}{ Adjusted Trial Balance } \\
\cline { 2 - 2 } & Debit & \\
Supplies & \(\$ 800\) & \\
Prepaid Insurance & 2,400 & \\
Salaries Payable & & 700 \\
Unearned Fees & & \\
Supplies Expense & 950 & \\
Insurance Expense & 400 & \\
Salaries Expense & 1,800 & \\
Fees Earned & & 2,500 \\
&
\end{tabular}
Analyze adjusted data (SO 2. 4, 5, 6, 7)
Answer the following questions, assuming the year begins January 1:

(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?

(b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one 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 \(\rightarrow\) December 31, 1995?

(d) If \(\$ 1,600\) of fees was received in January for services performed in January, what was the balance in Unearned Fees at December 31, 1995?

Transcribed Image Text:

Adjusted Trial Balance Debit Credit Supplies $ 800 Prepaid Insurance 2,400 Salaries Payable 700 Unearned Fees 750 Supplies Expense .950 Insurance Expense 400 Salaries Expense 1,800 Fees Earned 2,500