Wang Company accumulates the following adjustment data at December 31.For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1)Type of Adjustment (2)Accounts Before Adjustment (a) Services performed but unbilled totals $600. choose the type of adjustment Accrued ExpensesAccrued RevenuesUnearned RevenuesPrepaid Expenses Choose the status of the account Revenues OverstatedRevenues UnderstatedLiabilities OverstatedExpenses UnderstatedAssets OverstatedLiabilities UnderstatedExpenses OverstatedAssets Understated Choose the status of the account Revenues OverstatedExpenses UnderstatedAssets UnderstatedLiabilities UnderstatedRevenues UnderstatedAssets OverstatedLiabilities OverstatedExpenses Overstated (b) Store supplies of $160 are on hand. The supplies account shows a $1,900 balance. choose the type of adjustment Unearned RevenuesAccrued RevenuesPrepaid ExpensesAccrued Expenses Choose the status of the account Revenues OverstatedExpenses UnderstatedExpenses OverstatedLiabilities UnderstatedLiabilities OverstatedAssets UnderstatedRevenues UnderstatedAssets Overstated Choose the status of the account Assets UnderstatedExpenses UnderstatedRevenues UnderstatedLiabilities UnderstatedLiabilities OverstatedAssets OverstatedRevenues OverstatedExpenses Overstated (c) Utility expenses of $275 are unpaid. choose the type of adjustment Prepaid ExpensesAccrued ExpensesUnearned RevenuesAccrued Revenues Choose the status of the account Expenses OverstatedLiabilities OverstatedAssets UnderstatedLiabilities UnderstatedRevenues UnderstatedAssets OverstatedExpenses UnderstatedRevenues Overstated Choose the status of the account Liabilities UnderstatedLiabilities OverstatedRevenues OverstatedExpenses OverstatedRevenues UnderstatedAssets UnderstatedAssets OverstatedExpenses Understated (d) Service performed of $490 collected in advance. choose the type of adjustment Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues Choose the status of the account Revenues OverstatedExpenses OverstatedAssets UnderstatedExpenses UnderstatedRevenues UnderstatedAssets OverstatedLiabilities UnderstatedLiabilities Overstated Choose the status of the account Assets OverstatedRevenues UnderstatedLiabilities UnderstatedLiabilities OverstatedExpenses UnderstatedRevenues OverstatedExpenses OverstatedAssets Understated (e) Salaries of $620 are unpaid. choose the type of adjustment Accrued RevenuesUnearned RevenuesPrepaid ExpensesAccrued Expenses Choose the status of the account Assets UnderstatedLiabilities OverstatedAssets OverstatedRevenues OverstatedRevenues UnderstatedExpenses OverstatedExpenses UnderstatedLiabilities Understated Choose the status of the account Revenues UnderstatedAssets OverstatedExpenses UnderstatedAssets UnderstatedLiabilities OverstatedLiabilities UnderstatedRevenues OverstatedExpenses Overstated (f) Prepaid insurance totaling $400 has expired.

Wang Company accumulates the following adjustment data at December 31.For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1)Type of Adjustment (2)Accounts Before Adjustment (a) Services performed but unbilled totals $600. choose the type of adjustment Accrued ExpensesAccrued RevenuesUnearned RevenuesPrepaid Expenses Choose the status of the account Revenues OverstatedRevenues UnderstatedLiabilities OverstatedExpenses UnderstatedAssets OverstatedLiabilities UnderstatedExpenses OverstatedAssets Understated Choose the status of the account Revenues OverstatedExpenses UnderstatedAssets UnderstatedLiabilities UnderstatedRevenues UnderstatedAssets OverstatedLiabilities OverstatedExpenses Overstated (b) Store supplies of $160 are on hand. The supplies account shows a $1,900 balance. choose the type of adjustment Unearned RevenuesAccrued RevenuesPrepaid ExpensesAccrued Expenses Choose the status of the account Revenues OverstatedExpenses UnderstatedExpenses OverstatedLiabilities UnderstatedLiabilities OverstatedAssets UnderstatedRevenues UnderstatedAssets Overstated Choose the status of the account Assets UnderstatedExpenses UnderstatedRevenues UnderstatedLiabilities UnderstatedLiabilities OverstatedAssets OverstatedRevenues OverstatedExpenses Overstated (c) Utility expenses of $275 are unpaid. choose the type of adjustment Prepaid ExpensesAccrued ExpensesUnearned RevenuesAccrued Revenues Choose the status of the account Expenses OverstatedLiabilities OverstatedAssets UnderstatedLiabilities UnderstatedRevenues UnderstatedAssets OverstatedExpenses UnderstatedRevenues Overstated Choose the status of the account Liabilities UnderstatedLiabilities OverstatedRevenues OverstatedExpenses OverstatedRevenues UnderstatedAssets UnderstatedAssets OverstatedExpenses Understated (d) Service performed of $490 collected in advance. choose the type of adjustment Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues Choose the status of the account Revenues OverstatedExpenses OverstatedAssets UnderstatedExpenses UnderstatedRevenues UnderstatedAssets OverstatedLiabilities UnderstatedLiabilities Overstated Choose the status of the account Assets OverstatedRevenues UnderstatedLiabilities UnderstatedLiabilities OverstatedExpenses UnderstatedRevenues OverstatedExpenses OverstatedAssets Understated (e) Salaries of $620 are unpaid. choose the type of adjustment Accrued RevenuesUnearned RevenuesPrepaid ExpensesAccrued Expenses Choose the status of the account Assets UnderstatedLiabilities OverstatedAssets OverstatedRevenues OverstatedRevenues UnderstatedExpenses OverstatedExpenses UnderstatedLiabilities Understated Choose the status of the account Revenues UnderstatedAssets OverstatedExpenses UnderstatedAssets UnderstatedLiabilities OverstatedLiabilities UnderstatedRevenues OverstatedExpenses Overstated (f) Prepaid insurance totaling $400 has expired.

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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Question

		(1) Type of Adjustment	(2) Accounts Before Adjustment
(a)	Services performed but unbilled totals $600.	choose the type of adjustment Accrued ExpensesAccrued RevenuesUnearned RevenuesPrepaid Expenses	Choose the status of the account Revenues OverstatedRevenues UnderstatedLiabilities OverstatedExpenses UnderstatedAssets OverstatedLiabilities UnderstatedExpenses OverstatedAssets Understated
			Choose the status of the account Revenues OverstatedExpenses UnderstatedAssets UnderstatedLiabilities UnderstatedRevenues UnderstatedAssets OverstatedLiabilities OverstatedExpenses Overstated
(b)	Store supplies of $160 are on hand. The supplies account shows a $1,900 balance.	choose the type of adjustment Unearned RevenuesAccrued RevenuesPrepaid ExpensesAccrued Expenses	Choose the status of the account Revenues OverstatedExpenses UnderstatedExpenses OverstatedLiabilities UnderstatedLiabilities OverstatedAssets UnderstatedRevenues UnderstatedAssets Overstated
			Choose the status of the account Assets UnderstatedExpenses UnderstatedRevenues UnderstatedLiabilities UnderstatedLiabilities OverstatedAssets OverstatedRevenues OverstatedExpenses Overstated
(c)	Utility expenses of $275 are unpaid.	choose the type of adjustment Prepaid ExpensesAccrued ExpensesUnearned RevenuesAccrued Revenues	Choose the status of the account Expenses OverstatedLiabilities OverstatedAssets UnderstatedLiabilities UnderstatedRevenues UnderstatedAssets OverstatedExpenses UnderstatedRevenues Overstated
			Choose the status of the account Liabilities UnderstatedLiabilities OverstatedRevenues OverstatedExpenses OverstatedRevenues UnderstatedAssets UnderstatedAssets OverstatedExpenses Understated
(d)	Service performed of $490 collected in advance.	choose the type of adjustment Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues	Choose the status of the account Revenues OverstatedExpenses OverstatedAssets UnderstatedExpenses UnderstatedRevenues UnderstatedAssets OverstatedLiabilities UnderstatedLiabilities Overstated
			Choose the status of the account Assets OverstatedRevenues UnderstatedLiabilities UnderstatedLiabilities OverstatedExpenses UnderstatedRevenues OverstatedExpenses OverstatedAssets Understated
(e)	Salaries of $620 are unpaid.	choose the type of adjustment Accrued RevenuesUnearned RevenuesPrepaid ExpensesAccrued Expenses	Choose the status of the account Assets UnderstatedLiabilities OverstatedAssets OverstatedRevenues OverstatedRevenues UnderstatedExpenses OverstatedExpenses UnderstatedLiabilities Understated
			Choose the status of the account Revenues UnderstatedAssets OverstatedExpenses UnderstatedAssets UnderstatedLiabilities OverstatedLiabilities UnderstatedRevenues OverstatedExpenses Overstated
(f)	Prepaid insurance totaling $400 has expired.

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