Orwell Surf Shop 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. For each of the above items indicate the following. (Answer for account balances before adjustment should be entered in alphabetical order.) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense). The status of accounts before adjustment (overstatement or understatement). (a) (b)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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For each of the above items indicate the following. (Answer for account balances before adjustment should be entered in alphabetical order.)
The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
The status of accounts before adjustment (overstatement or understatement).
(a)
(b)
Item
1.
2.
3.
4.
5.
6.
Type of Adjustment
!!!!!!!
Accounts before Adjustment
Transcribed Image Text:For each of the above items indicate the following. (Answer for account balances before adjustment should be entered in alphabetical order.) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense). The status of accounts before adjustment (overstatement or understatement). (a) (b) Item 1. 2. 3. 4. 5. 6. Type of Adjustment !!!!!!! Accounts before Adjustment
Orwell Surf Shop accumulates the following adjustment data at December 31.
1. Services performed but unbilled total €3,000.
2.
Supplies of €300 have been used.
Utility expenses of €552 are unpaid.
Services p
s performed of €260 collected in advance.
Salaries of €800 are unpaid.
Prepaid insurance totalling €350 has expired.
3.
4.
5.
6.
For each of the above items indicate the following. (Answer for account balances before adjustment should be entered in alphabetical order.)
The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
The status of accounts before adjustment (overstatement or understatement).
(a)
(b)
Transcribed Image Text:Orwell Surf Shop accumulates the following adjustment data at December 31. 1. Services performed but unbilled total €3,000. 2. Supplies of €300 have been used. Utility expenses of €552 are unpaid. Services p s performed of €260 collected in advance. Salaries of €800 are unpaid. Prepaid insurance totalling €350 has expired. 3. 4. 5. 6. For each of the above items indicate the following. (Answer for account balances before adjustment should be entered in alphabetical order.) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense). The status of accounts before adjustment (overstatement or understatement). (a) (b)
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