During the year, a company recorded prepayments of expenses in asset accounts and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company must make three adjusting entries. (1) Accrue salaries expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. ___ Cr. ___ (2) Adjust the Unearned Services Revenue account to recognize earned revenue. . . . . . . Dr. ___ Cr. ___ (3) Record services revenue earned for which cash will be received the following period. . . Dr. ___ Cr. ___ For each of the adjusting entries (1), (2), and (3), indicate the account to be debited and the account to be credited—from a through i below. a. Prepaid Insurance d. Unearned Services Revenue g. Accounts Receivable b. Cash e. Salaries Expense h. Accounts Payable c. Salaries Payable f. Services Revenue i. Depreciation Expense
During the year, a company recorded prepayments of expenses in asset accounts and cash receipts of
unearned
revenues in liability accounts. At the end of its annual accounting period, the company must
make three
(1) Accrue salaries expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. ___ Cr. ___
(2) Adjust the Unearned Services Revenue account to recognize earned revenue. . . . . . . Dr. ___ Cr. ___
(3) Record services revenue earned for which cash will be received the following period. . . Dr. ___ Cr. ___
For each of the adjusting entries (1), (2), and (3), indicate the account to be debited and the account to be
credited—from a through i below.
a. Prepaid Insurance d. Unearned Services Revenue g. Accounts Receivable
b. Cash e. Salaries Expense h. Accounts Payable
c. Salaries Payable f. Services Revenue i.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
