Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. At the end
During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company must make three adjusting entries. (1) Adjust the Unearned Services Revenue account to recognize earned revenue. (2) Adjust the Supplies account for supplies used up during the year. (3) Accrue rent expense. For each of the adjusting entries (1), (2), and (3), indicate the account to be debited and the account to be credited-from a through/ below. a. Unearned service revenue b. Service revenue c. Supplies expense d. Supplies e. Rent expense f. Accounts payable g. Cash h. Current assets i. Plant assets 1. Debit Unearned service revenue Credit Service revenue 2. Debit Credit 3. Debit Rent expense Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started