Question

IS Haygandets Accounting Principles, 13e CALCULATOR PRINTER VERSION 4 BACK NEXT Brief Exercise 3-02 Gee Company accumulates the following adjustment data at December 31. Indicate the type of adjustment (prepaid expense, accrued revenue, and so on), and the status of accounts before adjustment (overstated or understated). (Enter answers in alphabetical order.) 1. Supplies of $150 are on hand. 2. Services performed but not recorded total $900. 3. Interest of $200 has accumulated on a note payable. 4. Rent collected in advance totaling $850 has been earned. Item Type of Adjustment Account Balances before Adjustment 1. > 2. < > 3. > < Click if you would like to Show Work for this question: Open Show Work

Answer 1

Item	Type of Adjustment	Account Balances before Adjustment
1)	Prepaid Expense	Assets are Overstated
		Expenses are understated
2)	Accrued Revenue	Assets are Understated
		Revenue is understated
3)	Accrued Expense	Expenses are understated
		Liabilities are understated
4)	Unearned Revenue	Liabilities are overstated
		Revenues are understated