Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Warning

Don't show me this message again for the assignment

OkCancel

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

Accounting Principles

Authors: Jerry J Weygandt

10th Edition

1118009282, 9781118009284

More Books

Students also viewed these Accounting questions

Question

The largest asset category of mutual funds as of 2 0 1 5 was

Answered: 1 week ago