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.

Question

Jeremiah Fleming

Business

5 December, 07:48

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.

+5

Answers (1)

Know the Answer?

Ruth Howard · Answer 1

1. Supplies of $150 are on hand - Prepaid expenses - Asset overstated and expenses understated

2. Services performed but not recorded total $900 - Accrued revenue - Asset understated and revenue understated

3. The interest of $200 has accumulated on a note payable - accrued expenses - expenses and liabilities understated

4. Rent collected in advance totaling $850 has been earned - unearned revenue - Liabilities overstated and revenue understated