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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 October 6, 2022, 10:40 am ad1c9bdddf
    https://brainmass.com/business/cash-vs-accrual-accounting/accrual-accounting-concepts-502706

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

    Accrual Accounting Concepts

    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).

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com October 6, 2022, 10:40 am ad1c9bdddf>
    https://brainmass.com/business/cash-vs-accrual-accounting/accrual-accounting-concepts-502706

    Attachments

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