Luong corporation encounters the following situations:
identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation at december 31, 2020.
1. luong collects $1,300 from a customer in 2020 for services to be performed in 2021.
2. luong incurs utility expense which is not yet paid in cash or recorded.
3. luong’s employees worked 3 days in 2020 but will not be paid until 2021.
4. luong performs services for customers but has not yet received cash or recorded the transaction.
5. luong paid $2,800 rent on december 1 for the 4 months starting december 1.
6. luong received cash for future services and recorded a liability until the service was performed.
7. luong performed consulting services for a client in december 2020. on december 31, it had not billed the client for services provided of $1,200.
8. luong paid cash for an expense and recorded an asset until the item was used up.
9. luong purchased $900 of supplies in 2020; at year-end, $400 of supplies remain unused.
10. luong purchased equipment on january 1, 2020; the equipment will be used for 5 years.
11. luong borrowed $12,000 on october 1, 2020, signing an 8% one-year note payable.