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obligation and it is probable that the consideration to which the entity is entitled in exchange for the goods will be collected. E3.5 Identify types of adjustments and accounts before adjustment. LO3, 4 Zimbabwe Ltd accumulates the following adjustment data at 30 June: (a) Services provided but not yet invoiced total $600. (b) Store supplies of $300 are on hand. Supplies account shows $2300 balance. (c) Electricity expenses of $225 are unpaid and unrecorded. (d) Service for which payment of $260 was collected in advance has been performed. (e) Salaries of $800 are unpaid and unrecorded. (f) Benefits arising from prepaid insurance totalling $350 have expired. Required (a) For each item indicate (1) the type of adjustment (prepaid expense, revenue received in advance, accrued revenue or accrued expense) and (2) the accounts before adjustment (over- statement or understatement). (b) Calculate the effect on profit if the adjustments were not recorded. E3.6 Prepare adjusting entries from selected account data. LO4 The ledger of Uniform Lid on 30 June of the current year includes these selected accounts and corresponding account numbers before adjusting entries have been prepared