Affleck Company accumulates the following adjustment data at December 31.
Instructions
For each of the 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).
Services provided but not recorded total $750.
Store supplies of $300 have been used.
Utility expenses of $225 are unpaid.
Unearned revenue of $260 has been earned.
Salaries of $900 are unpaid.
Prepaid insurance totaling $350 has expired.
(a) (b)
Item Type of Adjustment Accounts before Adjustment
1. Accrued ExpensesAccrued RevenuesUnearned RevenuesPrepaid Expenses Liabilities Overstated, Expenses UnderstatedLiabilities Understated, Revenues UnderstatedAssets Overstated, Expenses UnderstatedLiabilities Understated, Expenses OverstatedLiabilities Understated, Revenues OverstatedAssets Overstated, Revenues UnderstatedAssets Overstated, Revenues OverstatedAssets Understated, Expenses UnderstatedAssets Understated, Revenues UnderstatedAssets Understated, Expenses OverstatedLiabilities Overstated, Expenses OverstatedLiabilities Understated, Expenses UnderstatedLiabilities Overstated, Revenues UnderstatedAssets Understated, Revenues OverstatedAssets Overstated, Expenses OverstatedLiabilities Overstated, Revenues Overstated
2. Prepaid ExpensesAccrued RevenuesUnearned RevenuesAccrued Expenses Liabilities Overstated, Expenses UnderstatedLiabilities Understated, Revenues UnderstatedAssets Understated, Revenues OverstatedAssets Overstated, Revenues UnderstatedLiabilities Overstated, Revenues OverstatedAssets Understated, Expenses OverstatedAssets Overstated, Revenues OverstatedLiabilities Understated, Expenses UnderstatedLiabilities Understated, Revenues OverstatedAssets Overstated, Expenses OverstatedAssets Understated, Expenses UnderstatedLiabilities Overstated, Revenues UnderstatedLiabilities Overstated, Expenses OverstatedAssets Overstated, Expenses UnderstatedLiabilities Understated, Expenses Overstated
3. Unearned RevenuesAccrued ExpensesAccrued RevenuesPrepaid Expenses Assets Overstated, Revenues OverstatedAssets Overstated, Expenses OverstatedLiabilities Understated, Revenues OverstatedLiabilities Overstated, Revenues UnderstatedLiabilities Understated, Expenses UnderstatedAssets Overstated, Expenses UnderstatedAssets Understated, Expenses UnderstatedLiabilities Overstated, Revenues OverstatedLiabilities Understated, Expenses OverstatedLiabilities Understated, Revenues UnderstatedLiabilities Overstated, Expenses OverstatedAssets Understated, Expenses OverstatedAssets Overstated, Revenues UnderstatedAssets Understated, Revenues OverstatedLiabilities Overstated, Expenses Understated
4. Accrued ExpensesUnearned RevenuesPrepaid ExpensesAccrued Revenues Liabilities Overstated, Revenues UnderstatedAssets Understated, Revenues OverstatedAssets Overstated, Revenues UnderstatedLiabilities Overstated, Expenses OverstatedLiabilities Overstated, Expenses UnderstatedAssets Overstated, Expenses UnderstatedAssets Overstated, Revenues OverstatedLiabilities Understated, Expenses UnderstatedAssets Overstated, Expenses OverstatedAssets Understated, Expenses UnderstatedLiabilities Understated, Expenses OverstatedAssets Understated, Expenses OverstatedLiabilities Understated, Revenues UnderstatedLiabilities Understated, Revenues OverstatedLiabilities Overstated, Revenues Overstated
5. Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues Liabilities Understated, Expenses OverstatedAssets Overstated, Expenses UnderstatedLiabilities Overstated, Revenues OverstatedLiabilities Understated, Revenues UnderstatedLiabilities Understated, Revenues OverstatedAssets Understated, Revenues OverstatedAssets Overstated, Revenues UnderstatedLiabilities Overstated, Expenses UnderstatedAssets Overstated, Expenses OverstatedAssets Understated, Expenses UnderstatedLiabilities Understated, Expenses UnderstatedAssets Overstated, Revenues OverstatedAssets Understated, Expenses OverstatedLiabilities Overstated, Expenses OverstatedLiabilities Overstated, Revenues Understated
6. Unearned RevenuesAccrued RevenuesPrepaid ExpensesAccrued Expenses Assets Overstated, Expenses OverstatedLiabilities Understated, Expenses OverstatedLiabilities Understated, Revenues UnderstatedLiabilities Overstated, Expenses OverstatedLiabilities Overstated, Revenues UnderstatedLiabilities Overstated, Revenues OverstatedAssets Overstated, Expenses UnderstatedAssets Understated, Expenses UnderstatedAssets Understated, Revenues OverstatedAssets Overstated, Revenues UnderstatedLiabilities Overstated, Expenses UnderstatedLiabilities Understated, Revenues OverstatedAssets Overstated, Revenues OverstatedLiabilities Understated, Expenses UnderstatedAssets Understated, Expenses Overstated