1. The _________________________________________________ requires that companies recognize revenue in the accounting period in which the performance obligation is satisfied.

2. _______________________________________________ dictates that efforts (expenses) be recognized with results (revenues) in the period when the company makes efforts to generate those revenues.

3. Accrual-basis accounting means _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.

4. Why are adjusting entries needed? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.

5. Adjusting entries are classified as either ____________________________ or __________________________________________.

6. Prepaid expenses and unearned revenue are classified as what type of adjusting entry? ___________________________________________

7. Accrued expenses and accrued revenues are classified as what type of adjusting entry? ___________________________________________

8. The difference between the cost of a fixed asset and accumulated depreciation is called the ____________________________________.

9. Cash received by a company before services are performed is recorded as ______________________________________________ (credit side of the transaction).

10. Pamela Quinn started her own consulting firm, Quinn Consulting, on June 1, 2022. The trial balance at June 30 is as shown below.

In addition to those accounts listed on the trial balance, the chart of accounts for Quinn Consulting also contains the following accounts: Accumulated DepreciationEquipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.

Other data:

1. $1,900 of supplies were used as of June 30.

2. Utility costs incurred but not paid are $450.

3. The insurance policy is for 2 years.

4. $2,900 of the balance in the Unearned Service Revenue account has been earned at the end of the month.

5. The equipment has a 5-year life with no salvage value and is being depreciated at $200 per month for 60 months.

Instructions

Prepare the adjusting entries on June 30. Assume no other adjusting entries have been made. Skip a line between each transaction.

Date	Description	Debit	Credit