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Zimbabwee Ltd accumulates the following adjustment data at 30 June. (a) Services provided but not yet invoiced total $600. (b) Store supplies of $300 are
Zimbabwee 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 $2,300 balance. |
(c) | Electricity expenses of $225 are unpaid. |
(d) | Service for which payment of $260 was collected in advance has been performed. |
(e) | Salaries of $800 are unpaid. |
(f) | Benefits arising from prepaid insurance totalling $350 have expired. |
Required For each item indicate (1) the type of adjustment (Prepaid expense, Unearned revenue, Accrued revenue, or Accrued expense) and (2) the status of the accounts before adjustment (overstated or understated).
(The first one is done for you.)
Item | Type of adjustment | Assets or liabilities/overstated or understated | Revenues or expenses/overstated or understated |
(a) | Accrued revenue | Assets understated | Revenues understated |
(b) | Accrued expensePrepaid expenseUnearned revenueAccrued revenue | Assets understatedLiabilities overstatedLiabilities understatedAssets overstated | Revenues understatedExpenses understatedExpenses overstatedRevenues overstated |
(c) | Accrued expensePrepaid expenseUnearned revenueAccrued revenue | Liabilities understatedAssets overstatedLiabilities overstatedAssets understated | Revenues understatedExpenses overstatedRevenues overstatedExpenses understated |
(d) | Unearned revenueAccrued expenseAccrued revenuePrepaid expense | Liabilities understatedLiabilities overstatedAssets overstatedAssets understated | Revenues understatedRevenues overstatedExpenses understatedExpenses overstated |
(e) | Prepaid expenseUnearned revenueAccrued revenueAccrued expense | Liabilities overstatedAssets understatedAssets overstatedLiabilities understated | Revenues overstatedExpenses overstatedExpenses understatedRevenues understated |
(f) | Prepaid expenseAccrued revenueAccrued expenseUnearned revenue | Liabilities overstatedAssets understatedLiabilities understatedAssets overstated | Revenues understatedExpenses overstatedExpenses understatedRevenues overstated |
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