1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
hjlf
2 years ago
5

Wang Company accumulates the following adjustment data at December 31.

Business
1 answer:
horrorfan [7]2 years ago
3 0

Answer:

(a)Type of adjustment is accrued revenue. The account was understated before adjustment.

(b) The type of adjustment is prepaid expense. The account was overstated.

(c) The type of adjustment is accrued expense which has been understated.

(d) Adjustment type is unearned revenue. The account was understated.

(e) Salaries of $620 are unpaid. - Adjustment type is accrued expense and the account was understated.

(f) Prepaid expense which was overstated before adjustment.

Explanation:

(a) Services performed but unbilled totals $600 - Since the service has been provided, revenue has been earned and should have been recognized with the corresponding debit to the accrued revenue account. Before adjustment, the accrued revenue account would have been understated.

(b) Store supplies of $160 are on hand. The supplies account shows a $1,900 balance. -  This shows that stores supplies of $1,740 (the difference between $1,900 and $160) had been used up and should have been recognized as expense. As such, the type of adjustment is to prepaid expense. The account was overstated before adjustment as the balance should be $160 and not $1,900.

(c) Utility expenses of $275 are unpaid - The adjustment should have been posted to expense and accrued expense. Hence the type of adjustment is accrued expense which has been understated before adjustments.

(d) Service performed of $490 collected in advance - When the advance was collected, unearned revenue should have been recognized. Since it was not recognized before adjustment, the account was understated.

(e) Salaries of $620 are unpaid. - This is an accrued expense as the expense has been incurred but is yet to be paid. A non recognition before adjustment means the account was understated.

(f) Prepaid insurance totaling $400 has expired - This means that the prepaid insurance should have been derecognized since it has expired. As such, the account was overstated before adjustment.

You might be interested in
Nursing is a humanitarian service give reason​
swat32

Answer: Humanitarian nursing is nursing without limits. It involves everything Western nursing does and more, as nurses put their skills to use in places like conflict zones, refugee camps, or places where healthcare would otherwise be non-existent.

4 0
3 years ago
The restocking level increases as the service level falls. <br> a. True <br> b. False
Igoryamba
False is the correct answer
4 0
3 years ago
What is The appearance of text called?
Nezavi [6.7K]

The appearance of text is the customization or formatting of a text. For example, the font size, the font, and the color.

Middle School

Basic Rank

6 0
2 years ago
What is the typical relationship between time and interest rate?
lilavasa [31]
The answer is they seem to go together, since as time passes, the higher the interest rates grow or vice versa, while time passes interest rates may fall as well, but commonly, as time passes, so does interest rates rise. This reactions may be seen in huge companies or organizations that have invested huge amounts of money that have grown overtime
3 0
3 years ago
Yuhhhhhhhhhhhhhhhhhhhhhhhhhhh
inysia [295]

Answer:

yeeeeeeet

Explanation:

6 0
2 years ago
Read 2 more answers
Other questions:
  • To become an architect, you need six years of education. To become a physical therapist, you need two years of education. Which
    11·2 answers
  • A container of bolts, currently located in Houston, TX, needs to be delivered to a facility in Sioux Falls, SD. The standard gro
    15·1 answer
  • Spinal nerves exiting the cord from the level of L4 to S4 form the ________. Spinal nerves exiting the cord from the level of L4
    7·1 answer
  • Jenny would like to know whether she has budgeted enough money per month for groceries while she is in college. She takes a repr
    14·1 answer
  • Stroome, the focus on the opening feature for Chapter 6, has developed a new Web-based service for editing and remixing video. S
    11·1 answer
  • Eaton Electronics uses a periodic inventory system. On March 31, Eaton has two plasma TVs on hand at a cost of $1,500 each (seri
    5·1 answer
  • When a price, wage, or interest rate is adjusted automatically with inflation, it is said to be __________.
    10·1 answer
  • Explain how insurance companies use risk pooling to generate a profit for their
    10·1 answer
  • Name two types of domestic sewing machine​
    6·2 answers
  • Geoffrey owns a wedding dress store. If he increases the size of his store and experiences constant returns to scale as a result
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!