The Railway Company accumulates the following adjustment data as of December 31. 1. Revenue of $1,100 collected
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Question:
The Railway Company accumulates the following adjustment data as of December 31.
1. | Revenue of $1,100 collected in advance has been recognized. |
2. | Wages of $600 are not paid. |
3. | Prepaid rent totaling $400 is due. |
4. | Supplies of $550 have been used. |
5. | Revenue recognized but not billed is $750. |
6. | Utility charges of $300 are not paid. |
7. | Interest of $250 has accrued on a note payable. |
Instructions:
1. The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
2. The account relationship (asset/liability, liability/revenue, etc.).
3. The status of account balances before adjustment (understatement or overstatement).
4. The adjusting entry.
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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