Holooly Plus Logo
Holooly Plus Logo

Question 3.2: Type of Adjustment Classify the following items as (1) prepa...

Type of Adjustment

Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue

a.   Wages owed but not yet paid.          c.   Fees received but not yet earned.

b.   Supplies on hand.                               d.   Fees earned but not yet received.

The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

a.   Accrued expense                           c.   Unearned revenue
b.   Prepaid expense                           d.   Accrued revenue

Related Answered Questions

Question: 3.9

Effect of Errors For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by ...

Verified Answer:

a. The totals are equal even though the debit shou...
Question: 3.8

Effects of Adjustments For the year ending December 31, 2019, Mann Medical Co. mistakenly omitted adjusting entries for (1) $8,600 of unearned revenue that was earned, (2) earned revenue of $12,500 that was not billed, and (3) accrued wages of $2,900. Indicate the combined effect of the errors on ...

Verified Answer:

a. Revenues were understated by $21,100 ($8,600 + ...
Question: 3.7

Adjustment for Depreciation The estimated amount of depreciation on equipment for the current year is $4,250. Journalize the adjusting entry to record the depreciation. ...

Verified Answer:

Depreciation Expense . . . . . . . . . . . . . . ....
Question: 3.6

Adjustment for Prepaid Expense The prepaid insurance account had a beginning balance of $2,400 and was debited for $3,600 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $3,250.. ...

Verified Answer:

Insurance Expense . . . . . . . . . . . . . . . . ...
Question: 3.5

Adjustment for Unearned Revenue The balance in the unearned fees account, before adjustment at the end of the year, is $44,900. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $12,300. ...

Verified Answer:

Unearned Fees . . . . . . . . . . . . . . . . . . ...
Question: 3.4

Adjustment for Accrued Expense Sanregret Realty Co. pays weekly salaries of $12,500 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Thursday. ...

Verified Answer:

Salaries Expense . . . . . . . . . . . . . . . . ....
Question: 3.3

Adjustment for Accrued Revenues At the end of the current year, $13,680 of fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees. ...

Verified Answer:

Accounts Receivable . . . . . . . . . . . . . . . ...
Question: 3.1

Accounts Requiring Adjustment Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusting entry: a. Cash b. Utilities Expense c. Wages Expense d. Land e. Accounts Receivable f. Unearned Rent. ...

Verified Answer:

a.   No                      d.   No b.   Yes     ...
Question: 3.10

Vertcal Analysis Two income statements for Fortson Company follow: ...

Verified Answer:

a. Fortson Company Income Statements For the Y...