Classifying adjusting entries OBJ. 1 The following accounts were taken from the unadjusted trial balance of Orion Co., a congressional lobbying firm. Indicate whether or not each account would normally require an adjusting entry. If the account normally requires an adjusting entry, use the following notation to indicate the type of adjustment:

AE—Accrued Expense AR—Accrued Revenue PE—Prepaid Expense UR—Unearned Revenue To illustrate, the answer for the first account follows:

Account Answer Accounts Receivable Normally requires adjustment (AR).

Cash Common Stock Interest Expense Interest Receivable Land Office Equipment Prepaid Rent Supplies Unearned Fees Wages Expense