Adjusting Entries:

Adjustment for prepaid expenses

The prepaid insurance account had a beginning balance of $$9,600$ and was debited for $$12,900$ of premiums during the year.

What is the correct year$-$end journal entry required to record the adjustment if the amount unexpired insurance related to future periods is $$7,360?$

A$.$PrePaid Insurance $($Debit$)$ $$12,900$; Cash $($Credit$)$ $$12,900$

B$.$Insurance Expense $($Debit$)$ $$15,140$; PrePaid Insurance $($Credit$)$ $$15,140$

C$.$PrePaid Insurance $($Debit$)$ $$7,360$; Insurance Expense $($Credit$)$ $$7,360$

D$.$Insurance Expense $($Debit$)$ $$9,600)$; Prepaid Insurance $($Credit$)$ $$9,600$

Adjustment for unearned revenue:

The balance in the Unearned Fees account, before adjustment at the end of the year, is $$272,500.$

What is the correct journal entry required to record the adjustment assuming the amount of unearned fees at the end of the year is $$189,750?$

A$.$Cash $($Debit$)$ $$272,500$; Fees Earned $($Credit$)$ $$272,500$

B$.$Fees Earned $($Debit$)$ $$189,750$; Unearned Fees $($Credit$)$ $$189,750$

C$.$Unearned Fees $($Debit$)$ $$82,750$; Fees Earned $($Credit$)$ $$82,750$

D$.$No adjusting entry required

Adjustment to accrued revenue:

At the end of the current year, $$17,555$ of fees have been earned but have not been billed to clients. What is the correct journal entry required to record the adjustment?

A$.$Fees Earned $($Debit$)$ $$17,555$; Cash $($Credit$)$ $$17,555$

B$.$Cash $($Debit$)$ $$17,555$; Accounts Receivable $($Credit$)$ $$17,555$

C$.$No adjusting entry required

D$.$ Accounts Receivable $($Debit$)$ $$17,555$; Fees Earned $($Credit$)$ $$17,555$

Adjustment for accrued expenses:

Loosey Goosey Company pays weekly salaries of $$27,600$ on Monday for a six$-$day workweek ending the preceding Saturday. Journalize the necessary adjusting entry at the end of the accounting period, assuming the period ends on Wednesday. What is the correct journal entry required to record the adjustment, assuming the current accounting period ends on Wednesday?

A$.$No adjustment required

B$.$ Salaries Payable $($Debit$)$ $$27,600$; Salaries Expense $($Credit$)$ $$27,600$

C$.$Salaries Expense $($Debit$)$ $$13,800$; Salaries Payable $($Credit$)$ $$13,800$

D$.$Salaries Expense $($Debit$)$ $$13,800$; Cash $($Credit$)$ $$13,800$

Adjustment for depreciation:

The estimated amount of depreciation on equipment for the current year is $$7,700.$ What is the correct journal entry required to record the adjustment?

A$.$Depreciation Expense $($Debit$)$ $$7,700$; Accumulated Depreciation $($Credit$)$ $$7,70$

B$.$ No adjustment necessary

C$.$ Cash $($Debit$)$ $$7,700$; Equipment $($Credit$)$ $$7,700$

D$.$ Equipment Expense $($Debit$)$ $$7,700$; Depreciation Expense $($Credit$)$ $$7,700$