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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).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E3.6

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).
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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