Prepare The Answer In The Tabular Form 1 (21.4 KiB) Viewed 90 times
The Indigo Company accumulates the following adjustment data at December 31. 1. 2. 3. 4. Revenue of $1,342 collected in advance has been recognized. Salaries of $624 are unpaid. Prepaid rent totaling $424 has expired. Supplies of $561 have been used. Revenue recognized but unbilled totals $630. Utility expenses of $384 are unpaid. Interest of $310 has accrued on a note payable. 5. 6. 7.
(a) For each of the above items indicate: 1. 2. The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense). The account relationship (asset/liability, liability/revenue, etc.). The status of account balances before adjustment (understatement or overstatement). The adjusting entry. 3. 4.
Account Balances Before Adjustment (Understatement or Overstatement) Type of Adjustment Account Relationship 1. < vil 2. < vi 3. < < 4. < < 5. vi < vi 6. < 7.
Income Effect Increase (Decrease) Adjusting Entry Dr. Cr. Dr. Cr. Dr. . Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
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