E3.6 (LO 2, 3, 4) Mendoza Company accumulates the following adjustment data at December 31. 1. Services performed but unbilled total $3,000. 2. Supplies of $300 have been used. 3. Utility expenses of $552 are unpaid. 4. Services performed of $260 collected in advance. 5. Salaries of $800 are unpaid. 6. Prepaid insurance totaling $350 has expired. 3-44 CHAPTER 3 Adjusting the Accounts Identify types of adjustments and account relationships. Instructions For each of the above items indicate the following. a. The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) b. The status of accounts before adjustment (overstatement or understatement).

E3.6 (LO 2, 3, 4) Mendoza Company accumulates the following adjustment data at December 31. 1. Services performed but unbilled total $3,000. 2. Supplies of $300 have been used. 3. Utility expenses of $552 are unpaid. 4. Services performed of $260 collected in advance. 5. Salaries of $800 are unpaid. 6. Prepaid insurance totaling $350 has expired. 3-44 CHAPTER 3 Adjusting the Accounts Identify types of adjustments and account relationships. Instructions For each of the above items indicate the following. a. The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) b. The status of accounts before adjustment (overstatement or understatement).

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.8E: Adjustment for supplies Answer each of the following independent questions concerning supplies and...

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2 Davis Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (for example, “assets understated and revenues understated”). (a) Supplies of $400 are on hand. Supplies account shows $1,600 balance. (b) Services performed but unbilled total $700. (c) Rental services related to rent collected in advance totaling $1,100 have been provided. (d) Interest of $300 has accumulated on a note payable.
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