Zaragoza Company accumulates the following adjustment data at December 31, 2020
- Services performed but not recorded total $1,000.
- Supplies of $300 have been used.
- Utility expenses $225 are unpaid.
- Services related to unearned service revenue of $260 were performed.
- Salaries of $800 are unpaid.
- Prepaid insurance totaling $350 has expired.
For each of the above items indicate the following.
- The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
- The status of accounts before adjustment (overstatement or understatement).
Type of Adjustment
Accounts before Adjustment
|1||Accrued Revenue||Assets Understated and Revenues Understated|
|2||Prepaid Expense||Assets Overstated and Expense Understated|
|3||Accrued Expense||Expense Understated and Liabilities Understated|
|4||Unearned Revenue||Liabilities Overstated and Revenue Understated|
|5||Prepaid Expense||Assets Overstated and Expense Understated|