Wang Company accumulates the following adjustment data at December 31. For each item, indicate (1) the type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). Type of Accounts Before
Adjustments Adjustments
(a) Services performed but unbilled totals $600. Accrued Assets
Revenues Understated
Revenue Understated
(b) Store supplies of $160 are on hand, The supplies
account shows a $1,900 balance. Prepaid Expenses Assets Overstated
Liabilities Understated
(c) Utility expenses of $275 are unpaid. Accrued Expenses Revenues
Overstated
Liabilities Understated
(d) Service performed of $490 collected
in advance. Unearned Assets
Revenues Overstated
Liabilities
Understated
(e) Salaries of $60 are unpaid. Accrued Expenses Revenues
Overstated
Liabilities
Understated
(f) Prepaid insurance totaling $400 has expired. Prepaid Assets
Expenses Overstated
Liabilities
Understated

Which of the following pairs is most similar to each other? a. barter goods and fiat money b. digital money and barter goods c. fiat money and digital money d. commodity money and digital money

Steele bicycle manufacturing company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. steele produces and sells only 10,000 bikes each year. due to the low volume of activity, steele is unable to obtain the economies of scale that larger producers achieve. for example, steele could buy the handlebars for $31 each: they cost $34 each to make. the following is a detailed breakdown of current production costs: after seeing these figures, steele's president remarked that it would be foolish for the company to continue to produce the handlebars at $34 each when it can buy them for $31 each. calculate the total relevant cost. do you agree with the president's conclusion?

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.