The Rafael Company accumulates the following adjustment data at December 31. 1. Fees earned but unbilled total
Question:
The Rafael Company accumulates the following adjustment data at December 31.
1. Fees earned but unbilled total \(\$ 600\).
2. Store supplies of \(\$ 300\) have been used.
3. Utility expenses of \(\$ 225\) are unpaid.
4. Fees of \(\$ 260\) collected in advance have been earned.
5. Salaries of \(\$ 800\) are unpaid.
6. Prepaid insurance totaling \(\$ 350\) has expired.
\section*{Instructions}
For each of the above items indicate:
(a) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
(b) The account relationship (asset/revenue, liability/revenue, and so on).
(c) The accounts before adjustment (overstatement or understatement).
Step by Step Answer:
Financial Accounting
ISBN: 9780471169208
2nd Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso