50.1K

Verified Solution

Link Copied!

Analysis of Adjusted Data Selected T-account balances for Coyle Company are shown below as of January 31; adjusting entries have already been posted. The firm uses a calendar-year accounting period and makes monthly adjustments.

Supplies
Bal	800

Supplies Expense
Bal	960

Prepaid Insurance
Bal	738

Insurance Expense
Bal	82

Wages Payable
		500	Bal

Wages Expense
Bal	3,200

Truck
Bal	10,620

Accumulated Depreciation - Truck
		5,487	Bal

a. If the amount in Supplies Expense represents the January 31 adjustment for the supplies used in January, and $620 worth of supplies were purchased during January, what was the January 1 balance of Supplies?

$Answer

b. The amount in the Insurance Expense account represents the adjustment made at January 31 for January insurance expense. If the original insurance premium was for one year, what was the amount of the premium and on what date did the insurance policy start? $Answer Total premium AnswerJanuary 1February 1March 1April 1May 1June 1July 1August 1September 1October 1November 1December 1 Policy start date

c. If we assume that no balance existed in Wages Payable or Wages Expense on January 1, how much cash was paid as wages during January? $Answer

d. If the truck has a useful life of five years, what is the monthly amount of depreciation expense and how many months has Coyle owned the truck? $Answer monthly depreciation Answer months owned the truck

Answer & Explanation Solved by verified expert

See Answer