Match each of the following eight year-end adjustments with the appropriate year-end adjusting journal entry.

Year end adjustments 1. An expense has been incurred but not yet paid.

2. A $5,000 deposit for a conference to commence in two weeks’ time has been received. At the time the deposit was received, cash was debited and revenue was credited.

3. A bus insurance payment was expensed during the year, but at the end of the year there is still a period of insurance cover that has not been used up.

4. A car insurance payment was recorded by debiting insurance prepaid during the year, but at the end of the year there is still a period of insurance cover that has not been used up.

5. Some revenue appears to be unearned at the year end.

6. A new fixed asset purased at the beginning of the year was accounted for by debiting the fixed asset accounting and crediting the cash account.

7. A portion of rent for a large land parcel was paid in advance three weeks before the year end, but has not been used up at the year end. When the rent was paid by the hotel, the accountant debited rent expense and credited cash.

8. Rent for a smaller land parcel has not been paid by the hotel and is owing at the year-end.

Year-end journal entries

a. Debit revenue, credit unearned revenue.

b. Debit depreciation expense, credit accumulated depreciation.

c. Debit rent expense, credit rent payable.

d. Debit expense, credit expense payable.

e. Debit prepaid insurance, credit insurance expense.

f. Debit prepaid rent, credit rent expense.
g. Debit revenue, credit unearned revenue.
h. Debit insurance expense, credit insurance prepaid.