Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account.

Completed services that were paid for six months earlier, $1,720. The Service Revenue unadjusted balance as of December 31 is $10,700. The Unearned Revenue balance as of December 31 is $7,400.

Adjustment Type:

Accrual? Deferrals/Prepaids?

Unearned Revenue Service Revenue

Used prepaid insurance of $1,540. The Prepaid Insurance unadjusted balance as of December 31 is $10,200.

Adjustment Type:

AccrualDeferrals/Prepaids

Insurance Expense

Prepaid Insurance