Adjusting the Accounts

Hong Corporation encounters the following situations:
  1. Hong collects $1,300 from a customer in 2019 for services to be performed in 2020.
  2. Hong incurs utility expense which is not yet paid in cash or recorded.
  3. Hong's employees worked 3 days in 2019 but will not be paid until 2018.
  4. Hong performs services for customers but has not yet received cash or recorded the transactions.
  5. Hong received cash for future services and recorded a liability until the service was performed.
  6. Hong performed consulting services for a client in December 2019. On December 31, it had not billed the client for services provided of $1,200.
  7. Hong paid cash for an expense and recorded an asset until the item was used up.
  8. Hong purchased $900 of supplies in 2019; at year-end, $400 f supplies remain unused.
  9. Hong purchased equipment on January 1, 2019; the equipment will be used for 5 years.
  10. Hong borrowed $10,000 on October 1, 2019, signing an 8% one-year note payable.


Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation at December 31, 2019.


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