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1. In the space below, state whether each situation is a deferral or an accrual. a. Unrecorded interest on savings bonds is $765. b. Property

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1. In the space below, state whether each situation is a deferral or an accrual. a. Unrecorded interest on savings bonds is $765. b. Property taxes that have been incurred but that have not yet been paid or recorded amount to $1,034. c. Legal fees of $2,890 were collected in advance. By year end, 70 percent were still uncamed. d. Prepaid Insurance had a $900 balance prior to adjustment. By year end, 25 percent was still unexpired. Salaries earned by employees by vear end but not yet paid or recorded amounted to 51,655 1. Services totaling $690 have been performed but not yet recorded or billed, 2. For each of the following oversights, state whether owner's equity will be understated, overstated, or not affected. a.Failure to record depreciation b.Failure to record accrued wages c.Failure to convert unearned revenue to earned revenue d.Failure to record accrued interest in the bank e. Failure to record expired insurance f.Failure to record revenue earned but not yet received 3. Gravel Manufacturing had supplies on hand costing S480 on December 31. During the same year, supplies costing S320 were purchased, and $640 in supplies were consumed during the year. What was the cost of supplies on hand on January 1 of that year? 4. prepare adjusting entries for the following items. Omit explanations. a. Depreciation on machinery is $940 for the accounting period. b. Interest incurred on a loan but not paid or recorded is $635. c. Office supplies of $600 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $200. At the end of the period, $80 in office supplies remained. d. Commissions amounting to $540 were earned but not recorded or collected by year end. e. Prepaid Rent had an $8,000 normal balance prior to adjustment. By year end, 40 percent had expired

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