Answer
(a) Supplies of 400 USD are on hand. Supplies account shows 1,900 USD balance.
(b) Service revenue earned but unmilled total 700 USD.
(c) Interest of 300 USD has accumulated on a note payable.
(d) Rent collected in advance totaling 1,100 USD has been earned.
Work Step by Step
(a)
1. Prepaid expenses
2. Supplies account - overstated
Supplies expenses - understated
(b)
1. Accrued revenues
2. Accounts receivable account (asset) - understated
Revenue account - understated
(c)
1. Accrued expense
2. Expenses account - understated
Liability account - understated
(d)
1. Unearned revenues
2. Liability account - overstated
Rent revenue account - understated
