Eaton Enterprises made the following adjusting journal entries on December 31, 2017:

a. Give a brief explanation for each of the above entries.
b. Classify each of the above entries as either a cost expiration adjusting entry or an accrual adjusting entry.

Transcribed Image Text:

1. Rent Expense 1,200 Accrued Payable 2. Insurance Expense Prepaid Insurance 3. Depreciation Expense Accumulated Depreciation 1,200 5,000 5,000 20,000 20,000 4. Interest Receivable 1,500 Interest Revenue 1,500 5. Unearned Revenue 200 Service Revenue 200