Page 133 Instructions Prepare adjusting entries for the seven items described ab
ID: 2542392 • Letter: P
Question
Page 133
Instructions Prepare adjusting entries for the seven items described above. E3-6 Marten Company accumulates the following adjustment data at December 31. Identify types of adj and account relation L. Services provided but not recorded total $1,000. 2. Supplies of $300 have been used. 3. Utility expenses of $225 are unpaid. 4. Unearned service revenue of $260 has been earned. 5. Salaries of $800 are unpaid. 6. Prepaid insurance totaling $350 has expired. (SO 4, 5, 6) Instructions For each of the above items indicate the following. (a) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense). (b) The status of accounts before adjustment (overstatement or understatement). Prepare adjusting E3-7 The ledger of Danieal Rental Agency on March 31 of the current year includes the selected aunt dExplanation / Answer
E3-6.
Revenue is understated.
Assets inform of unearned revenue are under stated.
item a.type of adjustment b.accout balances before adjustment 1. service provided not yet recorded accrued revenue Assets and reveue accounts will be under stated. 2.Use of supplies Prepaid expense Assets in form of supplies are overstated. Expenses in form of supplies expense is under stated. 3.Utility expenses unpaid accrued expenses Expenses in form of utilites expense are under stated, liabilities in form of unpaid utility expenses are understated. 4.Unearned service revenue unearned revenueRevenue is understated.
Assets inform of unearned revenue are under stated.
5.salaries unpaid accrued expense Expenses in form of salaries expense under stated, liabilities in form of salaries payable understated. 6.Prepaid insurance expired prepaid expense asset in form of prepaid expense overstated, expense inform of insurance expense understated.Related Questions
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