Prepare adjusting entries for the following transactions. Omit explanations. 1. Unrecorded interest accrued on notes receivable is $500. 2. Utilities used but not yet paid or recorded amount to $1,500. 3. Consulting service revenues of $8,000 were collected in advance. By year end $2,000 was still unearned. 4. Prepaid insurance had a $8,000 debit balance prior to adjustment. By year end, 75 percent was unexpired. 5. Employee salaries incurred by year end but not yet paid or recorded was $20,000.

Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 20CE: Cornerstone Exercise 3-20 Deferred Expense Adjusting Entries Best Company had the following items...
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Problem 5    

Prepare adjusting entries for the following transactions. Omit explanations.

1. Unrecorded interest accrued on notes receivable is $500.

2. Utilities used but not yet paid or recorded amount to $1,500.

3. Consulting service revenues of $8,000 were collected in advance. By year end $2,000 was still unearned.

4. Prepaid insurance had a $8,000 debit balance prior to adjustment. By year end, 75 percent was unexpired.

5. Employee salaries incurred by year end but not yet paid or recorded was $20,000.

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