Question

Wang Company accumulates the following adjustment data at December 31.

For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.)

				(1) Type of Adjustment		(2) Accounts Before Adjustment
(a)		Services performed but unbilled totals $600.		Select a type of adjustment                                                          Accrued RevenuesAccrued ExpensesPrepaid ExpensesUnearned Revenues		Select a status of the accounts                                                          Revenues UnderstatedRevenues OverstatedAssets UnderstatedLiabilities UnderstatedExpenses OverstatedExpenses UnderstatedLiabilities OverstatedAssets Overstated
						Select a status of the accounts                                                          Liabilities UnderstatedRevenues OverstatedExpenses OverstatedExpenses UnderstatedAssets UnderstatedLiabilities OverstatedAssets OverstatedRevenues Understated
(b)		Store supplies of $160 are on hand. The supplies account shows a $1,900 balance.		Select a type of adjustment                                                          Accrued RevenuesUnearned RevenuesAccrued ExpensesPrepaid Expenses		Select a status of the accounts                                                          Expenses OverstatedRevenues OverstatedExpenses UnderstatedAssets OverstatedRevenues UnderstatedAssets UnderstatedLiabilities OverstatedLiabilities Understated
						Select a status of the accounts                                                          Liabilities OverstatedRevenues OverstatedAssets UnderstatedRevenues UnderstatedLiabilities UnderstatedExpenses UnderstatedAssets OverstatedExpenses Overstated
(c)		Utility expenses of $275 are unpaid.		Select a type of adjustment                                                          Prepaid ExpensesAccrued ExpensesAccrued RevenuesUnearned Revenues		Select a status of the accounts                                                          Liabilities OverstatedAssets OverstatedAssets UnderstatedRevenues OverstatedExpenses OverstatedLiabilities UnderstatedRevenues UnderstatedExpenses Understated
						Select a status of the accounts                                                          Liabilities OverstatedExpenses UnderstatedRevenues OverstatedRevenues UnderstatedAssets OverstatedAssets UnderstatedLiabilities UnderstatedExpenses Overstated
(d)		Service performed of $490 collected in advance.		Select a type of adjustment                                                          Accrued ExpensesUnearned RevenuesAccrued RevenuesPrepaid Expenses		Select a status of the accounts                                                          Revenues OverstatedExpenses OverstatedAssets OverstatedRevenues UnderstatedLiabilities UnderstatedExpenses UnderstatedAssets UnderstatedLiabilities Overstated
						Select a status of the accounts                                                          Assets OverstatedRevenues OverstatedLiabilities OverstatedAssets UnderstatedExpenses UnderstatedLiabilities UnderstatedRevenues UnderstatedExpenses Overstated
(e)		Salaries of $620 are unpaid.		Select a type of adjustment                                                          Accrued ExpensesPrepaid ExpensesUnearned RevenuesAccrued Revenues		Select a status of the accounts                                                          Expenses UnderstatedRevenues OverstatedRevenues UnderstatedLiabilities OverstatedLiabilities UnderstatedExpenses OverstatedAssets UnderstatedAssets Overstated
						Select a status of the accounts                                                          Assets OverstatedRevenues OverstatedExpenses OverstatedRevenues UnderstatedLiabilities UnderstatedExpenses UnderstatedLiabilities OverstatedAssets Understated
(f)		Prepaid insurance totaling $400 has expired.		Select a type of adjustment                                                          Prepaid ExpensesUnearned RevenuesAccrued RevenuesAccrued Expenses		Select a status of the accounts                                                          Expenses UnderstatedExpenses OverstatedLiabilities OverstatedAssets UnderstatedLiabilities UnderstatedAssets OverstatedRevenues UnderstatedRevenues Overstated
						Select a status of the accounts                                                          Assets OverstatedLiabilities OverstatedExpenses UnderstatedAssets UnderstatedRevenues UnderstatedRevenues OverstatedExpenses OverstatedLiabilities Understated

Answer 1

Transactions a Services performed but unbilled totals $ 600 b Store supplies of $160 are on hand. The supplies account shows a $1,900 balance C Utility expenses of $275 are unpaid. d Service performed of $490 collected in advance. e Salaries of $620 are unpaid. f Prepaid insurance totaling $400 has expired. Type of Adjustment Select a status of the accounts Accured Revenues Assets understated, Revenue Understated Prepaid Insurance Assets overstated, Expenses understated Accured Expenses Expenses Understated Liabilities understated Unearned Revenue Liabilities Understated revenues understated Accured Expenses Expenses Understated, Liabilities understated Prepaid Expenses Assets overstated. Expenses understated i