Indicate (A) the Type of Adjustment (Prepaid Expense Unearned Revenue

question 200

Essay

Indicate (a) the type of adjustment (prepaid expense unearned revenue accrued revenue or accrued expense) and (b) the accounts before adjustment (overstated or understated) for each of the following:
1. Supplies of $400 have been used.
2. Salaries of $300 are unpaid.
3. Rent received in advance totaling $500 has been earned.
4. Services provided but not recorded total $700.

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Definitions:

Vertical Axis

The vertical number line of a graph along which values of the y-variable are measured; also referred to as the y-axis.

Linear Relationship

The relationship between two variables in which the slope is constant and therefore is depicted on a graph by a curve that is a straight line.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a particular price over a specified period.

Quantity Demanded

The overall volume of a good or service that buyers are eager and capable of acquiring at a certain price within a specific period.