II$.$ SOLVE. Problems About Adjusting Entries

Accrued Revenues:

A company provides consulting services in December but will not receive payment until January. The service provided in December is valued at $$3,000.$

Question: What adjusting entry should the company make to recognize the accrued revenue?

Accrued Expenses:

$2.$ An organization incurs utility expenses for the month of December but will not receive the bill until January. The utility expense for December amounts to $$800.$

Question: How should the company adjust its accounts to reflect the accrued expense?

Prepaid Expenses:

$3.$ A business pays $$12,000$ for an annual insurance policy on January $1$ st$.$ By the end of December, $$8,000$ worth of insurance coverage has been used.

Question: What adjusting entry is needed to account for the insurance expense used during the year?

Unearned Revenues:

$4.$ A company receives $$2,500$ in advance from a customer for services to be provided over the next five months. By the end of the current month, two months of service have been completed.

Question: How should the company adjust its accounts to recognize the revenue earned in the current period?