ABC Company uses the approach that records prepaid expenses as expenses and records unearned revenues as revenues.

ABC Companny prepares monthly financial statements.

Select the correct journal entry or adjusting journal entry for each scenario given.

At month end $$500$ worth of services has not yet been provided to the customer who paid in advance earlier in the month.

At the start of the current month ABC Company paid $$1,200$ for a $1$ year insurance policy. At the end of the current month what is the adjusting entry Choose...

Choose...

Dr$.$ Unearned Revenue $$500Cr.$ Service Revenue $$500$

Dr$.$ Unearned Revenue $$1,000Cr.$ Cash $$1,000$

Dr$.$ Prepaid Insurance $$1,200Cr.$ Insurance Expense $$1,200$

Dr$.$ Cash $$1,000Cr.$ Service Revenue $$1,000$

Dr$.$ Insurance Expense $$100Cr.$ Prepaid Insurance $$100$

Dr Consulting Expenses $$1,000Cr.$ Cash $$1,000$

F$.$ Prepaid Consulting Expenses $$1,000Cr.$ Cash $$1,000$

Dr$.$ Service Revenue $$500$ Cr$.$ Unearned Revenue $$500$ that is needed?

Dr$.$ Cash $$1,000Cr.$ Unearned Revenue $$1,000$

Dr$.$ Prepaid Insurance $$1,100Cr.$ Insurance Expense $$1,100$