Acc557 Financial Accounting: E3-6 Orwell Company accumulates

Acc557 Financial Accounting

Exercise 3-6
Orwell Company accumulates the following adjustment data at December 31.
1. Services provided but not recorded total $1,420.
2. Supplies of $300 have been used.
3. Utility expenses of $225 are unpaid.
4. Unearned service revenue of $260 is recognized for services performed.
5. Salaries of $800 are unpaid.
6. Prepaid insurance totaling $380 has expired.

For each of the above items indicate the following. (Answer for account balances before adjustment should be entered in alphabetical order.)
(a) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
(b) The status of accounts before adjustment (overstatement or understatement).
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