Answer
(a) Service revenue earned but unmilled total 600 dollars
(b) Supplies of 300 dollars are on hand. Supplies account shows 1900 dollars balance.
(c) Utilities expenses of 275 dollars are unpaid
(d) Service revenue of 490 dollars collected in advance has been earned
(e) Prepaid insurance totaling 400 dollars has expired
Work Step by Step
(a)
1. accrued revenues
2. account receivable account (asset) - understated
Revenue account - understated
(b)
1. Prepaid expenses
2. supplies account - overstated
Supplies expenses - understated
(c)
1. accrued expenses
2. expense account - understated
Liability account - understated
(d)
1. unearned revenues
2. liability account - overstated
Revenue account - understated
(e)
1. prepaid expenses
2. expense account - understated
Asset account - understated
