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Peng Company accumulates the following adjustment data at December 31.
(a) Service Revenue earned but unbilled totals $600.(b) Store supplies of $160 are on hand. Supplies account shows $1,900 balance.(c) Utility expenses of $275 are unpaid.(d) Service revenue of $490 collected in advance has been earned.(e) Salaries of $620 are unpaid.(f) Prepaid insurance totaling $400 has expired.
Instructions
For each item, indicate
(1) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and
(2) The status of the accounts before adjustment (overstated or understated).
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