[F]If anybody can tell me just HOW to figure out the answers to these questions, please help! I looked all through my book and it's completely unhelpful.

A partial adjusted trial balance of Ruiz Company at January 31, 2005, shows the following.



RUIZ COMPANY
Adjusted Trail Balance
January 31, 2005

Debit Credit
Supplies $ 850
Prepaid Insurance 2,400
Salaries Payable $ 800
Unearned Revenue 750
Supplies Expense 950
Insurance Expense 400
Salaries Expense 1,800
Service Revenue 2,000




Answer the following questions, assuming the year begins January 1.

1. If the amount in Supplies Expense is the January 31 adjusting entry, and $650 of supplies was purchased in January, what was the balance in Supplies on January 1?

2. If $3,000 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2004?

3. If $1,600 was received in January for services performed in January, what was the balance in Unearned Revenue at December 31, 2004?

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Originally Posted by pandora3

1. If the amount in Supplies Expense is the January 31 adjusting entry, and $650 of supplies was purchased in January, what was the balance in Supplies on January 1?

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How does one calculate the Supplies account?

Supplies, Beginning Balance, Jan 1
+ Purchases during the month
– Supplies that you used up during the year (also known as Supplies Expense)
= Ending Supplies Balance, Jan 31

So you know the value of the supplies used up, and you know how many supplies were purchased, and you know the supplies ending balance on Jan 31….

All you have to do is plug in those numbers and you will get the Jan 1 balance for supplies.

Quote:

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Originally Posted by pandora3

2. If $3,000 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2004?

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Salaries Expense relates to actual January salaries.

So therefore we know that salaries earned in January were 1,800.

Since the Salaries Payable at Jan 31 is also 1,800, we can assume that NO January salaries were paid.

But we know that 3,000 was paid, therefore that must relate to Dec. 31, 2004.

Quote:

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Originally Posted by pandora3

3. If $1,600 was received in January for services performed in January, what was the balance in Unearned Revenue at December 31, 2004?

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From reading this question. I have to make an assumption that you only have 1 client that the Unearned Revenue pertains to.

The client had prepaid 750 (unearned revenue), yet they also paid you 1,600 in January.

Therefore, the JE would be:
Dr. Unearned Revenue 750
Dr. Cash 1,600
Cr. Service Revenue 2,350

Service Revenue would be Cash received plus unearned revenue.