Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If possible please type the answer PC obligation and it is probable that the consideration to which the entity is entitled in exchange for the

If possible please type the answer

image text in transcribed
PC obligation and it is probable that the consideration to which the entity is entitled in exchange for the goods will be collected. E3.5 Identify types of adjustments and accounts before adjustment. LO3, 4 Zimbabwe Ltd accumulates the following adjustment data at 30 June: (a) Services provided but not yet invoiced total $600. (b) Store supplies of $300 are on hand. Supplies account shows $2300 balance. (c) Electricity expenses of $225 are unpaid and unrecorded. (d) Service for which payment of $260 was collected in advance has been performed. (e) Salaries of $800 are unpaid and unrecorded. (f) Benefits arising from prepaid insurance totalling $350 have expired. Required (a) For each item indicate (1) the type of adjustment (prepaid expense, revenue received in advance, accrued revenue or accrued expense) and (2) the accounts before adjustment (over- statement or understatement). (b) Calculate the effect on profit if the adjustments were not recorded. E3.6 Prepare adjusting entries from selected account data. LO4 The ledger of Uniform Lid on 30 June of the current year includes these selected accounts and corresponding account numbers before adjusting entries

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Fraud Examination

Authors: Joseph T Wells

2nd Edition

0470128836, 9780470128831

More Books

Students also viewed these Accounting questions

Question

The number of people commenting on the statement

Answered: 1 week ago

Question

Peoples understanding of what is being said

Answered: 1 week ago