Which of the following statements is incorrect concerning the adjusted trial balance? a. An adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made.

b. The adjusted trial balance provides the primary basis for the preparation of financial statements.

c. The adjusted trial balance lists the account balances segregated by assets and liabilities.

d. The adjusted trial balance is prepared after the adjusting entries have been journalized and posted.

A company fails to recognize revenue earned but not yet received.Which of the following accounts are involved in the adjusting entry: (a) asset, (b) liability, (c) revenue, or (d) expense? For the accounts selected, indicate whether they would be debited or credited in the entry.

On January 9, a company pays $5,000 for salaries, of which $2,000 was reported as Salaries Payable on December 31. Give the entry to record the payment.

Adel Company debits Supplies Expense for all purchases of supplies and credits Rent Revenue for all advanced rentals. For each type of adjustment, give the adjusting entry.

Nunez Company accumulates the following adjustment data at December 31. Indicate

(a) the type of adjustment (prepaid expense, accrued revenues and so on), and

(b) the status of accounts before adjustment (overstated or understated).

1. Supplies of $100 are on hand.

2. Services provided but not recorded total $900.

3. Interest of $200 has accumulated on a note payable.

4. Rent collected in advance totaling $800 has been earned.