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.) (1) Type of Adjustment (2) Accounts Before Adjustment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
a.
b.
C.
d.
Supplies of $400 are on hand. Supplies account shows $1,600
balance.
Services performed but unbilled total $700.
Interest of $300 has been incurred and unpaid on a note
payable.
Rent collected in advance totaling $1,100 has been earned.
(1)
Type of Adjustment
(2)
Accounts Before
Adjustment
Transcribed Image Text: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 a. b. C. d. Supplies of $400 are on hand. Supplies account shows $1,600 balance. Services performed but unbilled total $700. Interest of $300 has been incurred and unpaid on a note payable. Rent collected in advance totaling $1,100 has been earned. (1) Type of Adjustment (2) Accounts Before Adjustment
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