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1. Preparing adjusting entries Stark Company records prepayments of expenses in asset accounts and receipts of unearned revenues in liability accounts. Using the list
1. Preparing adjusting entries Stark Company records prepayments of expenses in asset accounts and receipts of unearned revenues in liability accounts. Using the list of accounts provided, identify the debit and credit entry required for each of the annual adjustments described in (a) through (e). 1 Cash Accounts 7 Advertising Receivable 2 Prepaid Advertising 8 Accumulated Depreciation- Equipment 3 Advertising Payable 9 Equipment 4 Advertising Expenses 10 Unearned Services Revenue 5 Equipment Expenses 11 Accrued Services Revenue 6 Depreciation Expenses 12 Account Receivable Debits Credits a. Accrual of unpaid and unrecorded advertising that wa used by company. b. Accrual of uncollected and unrecorded sevices revenue. c. Adjustment of Unearned Services Revenue to recognize earned revenue. d. Recorded revenue for work completed this accounting period; the cash Will be received in the next period. e. The cost of equipment was matched to the time periods benefited. f. Adjustment of prepaid advertising to recognize the portion
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