The Rafael Company accumulates the following adjustment data at December 31. 1. Fees earned but unbilled total

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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).

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Financial Accounting

ISBN: 9780471169208

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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