E3.6 (LO 2, 3, 4) Mendoza Company accumulates the following adjustment data at December 31. 1. Services performed but unbilled total $3,000. 2. Supplies of $300 have been used. 3. Utility expenses of $552 are unpaid. 4. Services performed of $260 collected in advance. 5. Salaries of $800 are unpaid. 6. Prepaid insurance totaling $350 has expired. 3-44 CHAPTER 3 Adjusting the Accounts Identify types of adjustments and account relationships. Instructions For each of the above items indicate the following. a. The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) b. The status of accounts before adjustment (overstatement or understatement).
E3.6 (LO 2, 3, 4) Mendoza Company accumulates the following adjustment data at December 31. 1. Services performed but unbilled total $3,000. 2. Supplies of $300 have been used. 3. Utility expenses of $552 are unpaid. 4. Services performed of $260 collected in advance. 5. Salaries of $800 are unpaid. 6. Prepaid insurance totaling $350 has expired. 3-44 CHAPTER 3 Adjusting the Accounts Identify types of adjustments and account relationships. Instructions For each of the above items indicate the following. a. The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) b. The status of accounts before adjustment (overstatement or understatement).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E3.6
Transcribed Image Text:E3.6 (LO 2, 3, 4) Mendoza Company accumulates the following adjustment data at December 31.
1. Services performed but unbilled total $3,000.
2. Supplies of $300 have been used.
3. Utility expenses of $552 are unpaid.
4. Services performed of $260 collected in advance.
5. Salaries of $800 are unpaid.
6. Prepaid insurance totaling $350 has expired.
3-44 CHAPTER 3 Adjusting the Accounts
Identify types of adjustments and
account relationships.
Instructions
For each of the above items indicate the following.
a. The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
b. The status of accounts before adjustment (overstatement or understatement).
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