Effects of Adjusting Entries on the Accounting Equation Four adjusting entries are shown below. a. Interest Expense 1,595 Interest Payable 1,595 b. Interest Receivable 1,050 Interest Income 1,050 c. Insurance Expense 2,470 Prepaid Insurance 2,470 d. Unearned Rent Revenue 5,360 Rent Revenue 5,350 Required: Conceptual Connection: Analyze the adjusting entries and identify their effects on the financial statement accounts. (Note: Ignore any income tax effects.) If an amount box does not require an entry, leave it blank. Enter decreases as negative numbers. Transaction Assets a. b. C. d. Liabilities Common Stock Retained Earnings Revenues Expenses