Question

Adjustment data are as follows: supplies on hand, january 31, 900; insurance expired for january,1,100; depreciation on equipment for january, 1,600; salaries accrued, january 31,1,650. What is the total amount of adjustments for the month of January?

1) 4,250
2) 3,750
3) 5,250
4) 2,750

Answer 1

The total amount of adjustments for the month of January is calculated by summing up the supplies cost, expired insurance, equipment depreciation, and accrued salaries, which equals $5,250.

Step-by-step explanation:

You're asked to calculate the total amount of adjustments for the month of January. To determine this, we add together the following amounts:

• Supplies on hand, January 31: $900
• Insurance expired for January: $1,100
• Depreciation on equipment for January: $1,600
• Salaries accrued, January 31: $1,650

Adding these amounts together:

$900 + $1,100 + $1,600 + $1,650 = $5,250.

Thus, the total amount of adjustments for the month of January is $5,250, which corresponds to option 3).