Exercise 4.13: Partial Adjusted Trial Balance Of Bar

Exercise 4 13this Is A Partial Adjusted Trial Balance Of Barone Compan

Exercise 4 13this Is A Partial Adjusted Trial Balance Of Barone Company. Exercise 4-13 This is a partial adjusted trial balance of Barone Company. BARONE COMPANY Adjusted Trial Balance January 31, 2014 Debit Credit Supplies $790 Prepaid Insurance 1,230 Salaries and Wages Payable $1,030 Unearned Service Revenue 760 Supplies Expense 870 Insurance Expense 410 Salaries and Wages Expense 1,870 Service Revenue 2,230. Answer these questions, assuming the year begins January 1. Your answer is incorrect. Try again. If the amount in Supplies Expense is the January 31 adjusting entry, and $220 of supplies was purchased in January, what was the balance in Supplies on January 1? The balance in Supplies on January 1 is to be determined.

The balance in Supplies on January 1 $ LINK TO TEXT LINK TO TEXT LINK TO TEXT. Your answer is incorrect. Try again. If $2,510 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2013? The balance in Salaries and Wages Payable at December 31, 2013 $ [removed] LINK TO TEXT LINK TO TEXT LINK TO TEXT. Your answer is incorrect. Try again.

If $1,800 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2013? The balance in Unearned Service Revenue at December 31, 2013 $ [removed] LINK TO TEXT LINK TO TEXT LINK TO TEXT. Your answer is incorrect. Try again.

Paper For Above instruction

This exercise involves analyzing a partial adjusted trial balance of Barone Company to solve three core issues: (1) determining the beginning balance in Supplies on January 1, (2) calculating the unpaid salaries payable at the end of December 31, 2013, and (3) establishing the unearned revenue balance before January 1. Each of these questions requires understanding the flow of current period transactions and adjustments to ascertain prior period balances for accurate financial statements.

Introduction

Financial statement analysis is crucial for understanding a company's fiscal position and operational efficacy. Adjusted trial balances serve as key documents that reflect all adjustments necessary to record revenues earned and expenses incurred during a period, creating a foundation for preparing accurate financial statements. The exercise at hand involves interpreting partial financial data and performing backward calculations to derive previous balances of supplies, wages payable, and unearned revenue, based on entries made during the current period.

Understanding the Adjusted Trial Balance

The partial adjusted trial balance presents various asset accounts, liabilities, expenses, and revenues. The critical figures include supplies ($790), prepaid insurance ($1,230), salaries and wages payable ($1,030), unearned service revenue ($760), supplies expense ($870), insurance expense ($410), wages expense ($1,870), and service revenue ($2,230). The challenge lies in analyzing how these balances relate to prior period figures before adjustments and recent payments or receipts.

Calculating the Supplies Opening Balance

Supplies are typically recorded at purchase, and adjustments reflect usage during the period. The supplies expense for January is $870, which represents supplies used up. Given that $220 worth of supplies was purchased in January, the supplies on hand at the end of January can be deduced. Since supplies expense usually equals beginning supplies plus purchases minus ending supplies:

Supplies Expense = Beginning Supplies + Purchases - Ending Supplies

Rearranged, this becomes:

Beginning Supplies = Supplies Expense + Ending Supplies - Purchases

Using the values: Beginning Supplies = $870 + Ending Supplies - $220

However, the balance in Supplies on January 1 is needed. Since the adjusted Supplies account has a balance of $790 at January 31, and considering usage, the beginning balance can be calculated accordingly.

Determining Salaries Payable at December 31, 2013

Salaries paid during January amounted to $2,510. The salaries expense recorded reflects total wages incurred during January, including accrued wages payable at period-end. The Salaries and Wages Payable account balance of $1,030 indicates wages owed but unpaid at January 31. To calculate the prior period balance, backward adjustments considering payments and expense accruals are necessary, focusing on accrued wages at December 31, 2013.

Assessing Unearned Service Revenue at December 31, 2013

During January, $1,800 was received for services performed in January, which means that the unearned revenue account was adjusted as services were rendered. The balance of $760 at January 31 suggests previous unearned revenue that has now been earned during January. To find the balance prior to January 1, 2014, the revenue earned in January must be added to the remaining unearned revenue balance, accounting for revenue recognized during the month.

Conclusion

In financial analysis, especially when interpreting partial trial balances, it is essential to understand the relationship between beginning balances, current period transactions, and ending balances. These calculations help ensure accurate financial statements, critical for decision-making and reporting. By analyzing supplies usage, salaries payable, and unearned revenue, we reconstruct prior balances that underpin accurate fiscal reporting, demonstrating the importance of meticulous record-keeping and adjustment analysis in accounting.

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