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