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    Accrual Accounting Concepts

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    Dicker Company accumulates the following adjustment data at December 31:
    a). Supplies of $400 are on hand. Supplies account shows $1,600 balance.
    b). Service Revenue earned, but unbilled total $700.
    c). Interest of $300 has accumulated on a note payable.
    d). Rent collected in advance totaling $1,100 has been earned.

    Indicate the type of adjustment (prepaid expense, accrued revenue, and so
    on) and the status of the accounts before the adjustment (overstated or
    understated).

    © BrainMass Inc. brainmass.com June 3, 2020, 9:16 pm ad1c9bdddf
    https://brainmass.com/business/cash-vs-accrual-accounting/accrual-accounting-concepts-502706

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    Solution Preview

    Attached is a formatted MS Excel spreadsheet which addresses the question and offers an insight into the concepts of accrual accounting.

    Accrual Accounting ...

    Solution Summary

    The attached worksheet illustrates how to differentiate between the various types of accounting adjustments (prepaid expense, accrued revenue, and so on) and the status of the cited accounts before the adjustment (overstated or
    understated).

    $2.19

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