Calvin Consulting initially records prepaid and unearned items in income statement accounts. Given this QS 3-1 company’s accounting practices, which of the following applies to the preparation of adjusting entries at Preparing adjusting entries the end of its first accounting period? q3

a. Unearned fees (on which cash was received in advance earlier in the period) are recorded with a debit to Consulting Fees Earned and a credit to Unearned Consulting Fees.

b. Unpaid salaries are recorded with a debit to Prepaid Salaries and a credit to Salaries Expense.

c. The cost of unused office supplies is recorded with a debit to Supplies Expense and a credit to Office Supplies.

d. Earned but unbilled (and unrecorded) consulting fees are recorded with a debit to Unearned Consult¬ ing Fees and a credit to Consulting Fees Earned.