A partial adjusted trial balance follows for Nolet Ltd at

#8521
A partial adjusted trial balance follows for Nolet Ltd at

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.
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 (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.

A partial adjusted trial balance follows for Nolet Ltd at

ANSWER
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