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HOMEWORK: CHAPTER 3 PART 2

Question 1

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. Supplies account shows $1,600 balance.
2.		Services performed but unbilled total $900.
3.		Interest of $200 has accumulated (and not been paid) on a note payable.
4.		Rent collected in advance totaling $850 has been earned.

Item		Type of Adjustment		Account Balances before Adjustment
1.		select a type Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues		select an account status Assets OverstatedAssets UnderstatedRevenues OverstatedRevenues UnderstatedLiabilities OverstatedLiabilities Understated
				select an account status Expenses OverstatedExpenses UnderstatedRevenues OverstatedRevenues UnderstatedLiabilities OverstatedLiabilities Understated
2.		select a type Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues		select an account status Assets OverstatedAssets UnderstatedExpenses OverstatedExpenses UnderstatedLiabilities OverstatedLiabilities Understated
				select an account status Expenses OverstatedExpenses UnderstatedRevenues OverstatedRevenues UnderstatedLiabilities OverstatedLiabilities Understated
3.		select a type Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues		select an account status Assets OverstatedAssets UnderstatedExpenses OverstatedExpenses UnderstatedRevenues OverstatedRevenues Understated
				select an account status Assets OverstatedAssets UnderstatedRevenues OverstatedRevenues UnderstatedLiabilities OverstatedLiabilities Understated
4.		select a type Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues		select an account status Assets OverstatedAssets UnderstatedExpenses OverstatedExpenses UnderstatedLiabilities OverstatedLiabilities Understated
				select an account status Assets OverstatedAssets UnderstatedExpenses OverstatedExpenses UnderstatedRevenues OverstatedRevenues Understated