Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (for example, "assets understated and revenues understated"). (Enter your answers in alphabetical order.) Item (1) Type of Adjustment (2) Accounts Before Adjustment (a) Supplies of $400 are on hand. Supplies account shows $1,600 balance. Accrued Expenses Assets Understated Expenses Overstated (b) Services performed but unbilled total $700. Accrued Revenues Liabilities Understated Revenues Overstated (c) Interest of $300 has accumulated on a note payable. Accrued Expenses Assets Overstated Expenses Understated (d) Rental services related to rent collected in advance totaling $1,100 have been provided. Accrued Revenues Assets Overstated Revenues Overstated

Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (for example, "assets understated and revenues understated"). (Enter your answers in alphabetical order.) Item (1) Type of Adjustment (2) Accounts Before Adjustment (a) Supplies of $400 are on hand. Supplies account shows $1,600 balance. Accrued Expenses Assets Understated Expenses Overstated (b) Services performed but unbilled total $700. Accrued Revenues Liabilities Understated Revenues Overstated (c) Interest of $300 has accumulated on a note payable. Accrued Expenses Assets Overstated Expenses Understated (d) Rental services related to rent collected in advance totaling $1,100 have been provided. Accrued Revenues Assets Overstated Revenues Overstated

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 20E: Assume the following data for Oshkosh Company before its year-end adjustments: Journalize the...

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Assume the following data for Lusk Inc. before its year-end adjustments: Journalize the adjusting entries for the following: a. Estimated customer allowances b. Estimated customer returns
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