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Exe rcise 3-6 O rw e ll C o mp a n y a ccu mu la te s th e fo llo w in g a d ju s tme n t d a ta a t De ce mb e r 3 1 . Se rvice s p ro vid e d b u t...

Please answer the attached exercises.

Exercise 3-6 Orwell Company accumulates the following adjustment data at December 31. 1. Services provided but not recorded total $1,420. 2. Supplies of $300 have been used. 3. Utility expenses of $225 are unpaid. 4. Unearned service revenue of $260 is recognized for services performed. 5. Salaries of $800 are unpaid. 6. Prepaid insurance totaling $380 has expired. For each of the above items indicate the following. (Answer for account balances before adjustment should be entered in alphabetical order.) (a) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense). (b) The status of accounts before adjustment (overstatement or understatement). Item Type of Adjustment Accounts before Adjustment 1. 2. 3. 4. 5. 6. Exercise 3-7 The ledger of Villa Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 20,000 Unearned Rent Revenue 9,900 Rent Revenue 60,000 Interest Expense 0 Salaries and Wages Expense 14,000 An analysis of the accounts shows the following
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1. The equipment depreciates $300 per month. 2. One-third of the unearned rent revenue was recognized during the quarter. 3. Interest of $500 is accrued on the notes payable. 4. Supplies on hand total $650. 5. Insurance expires at the rate of $200 per month. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly . Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Mar. 31 2. Mar. 31 3. Mar. 31 4. Mar. 31 5. Mar. 31 Exercise 3-11 A partial adjusted trial balance of Ruiz Company at January 31, 2014, shows the following. Ruiz Company Adjusted Trial Balance January 31, 2014 Debit Credit Supplies $ 850 Prepaid Insurance 2,400 Salaries and Wages Payable $ 800 Unearned Service Revenue 750 Supplies Expense 950 Insurance Expense 400 Salaries and Wages Expense 2,500 Service Revenue 2,000 Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $670 of supplies was purchased in January, what was the balance in Supplies on January 1? The balance in Supplies on January 1 $ (b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium and when was the policy purchased?
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Solutions to assignment of  Christine68 (Oct 20).xlsx

Solutions to assignment of Christine68 (Oct 20)
Ex 3-6 Orwell Company
Item
1. Type of adjustment
Accrued revenue Accounts before adjustment
Accounts receivable (asset) is understated
Service...

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