Hong Corporation encounters the following situations:
- Hong collects $1,300 from a customer in 2019 for services to be performed in 2020.
- Hong incurs utility expense which is not yet paid in cash or recorded.
- Hong's employees worked 3 days in 2019 but will not be paid until 2018.
- Hong performs services for customers but has not yet received cash or recorded the transactions.
- Hong received cash for future services and recorded a liability until the service was performed.
- 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.
- Hong paid cash for an expense and recorded an asset until the item was used up.
- Hong purchased $900 of supplies in 2019; at year-end, $400 f supplies remain unused.
- Hong purchased equipment on January 1, 2019; the equipment will be used for 5 years.
- Hong borrowed $10,000 on October 1, 2019, signing an 8% one-year note payable.
Instructions
Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation at December 31, 2019.
Answer
