Answered Essay: Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of

Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) Type of Adjustment Accounts Before Adjustment PreaidExpenses .「 (a) Supplies of S400 are on hand. Supplies account shows $1,600 balance. Assets Overstated Expenses Understated ▼ (b) Services performed but unbilled total $700 Accrued Revenues (c) Interest of $300 has accumulated on a note payable. Accrund Expenses Liabilities overstated ▼ Expenses Understated d) Rent collected in advance totaling $1,100 has been earned. Accrued Expenses Revenues Overstated Assets Understated

Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.)

Expert Answer

 

(c) Interest of $300 has accumulated on a note payable. Accrued Expenses Expenses Understated
Liabilities Understated
(d) Rent collected in advance totaling $1,100 has been earned. Unearned Revenues Liabilities Overstated
Revenues Understated
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