In this chapter, we are discussing adjusting entries that are important to the accrual basis of accounting. There are four main classifications of journal entries, and each serves its own purpose and has several examples. Identify the Adjusted Prepaid (Deferred) Expense journal entry and answer the following questions about it.

Briefly provide answers to the following questions:

1. What is the classification of the journal entry in question?
2. What accounts get debited and credited to account for the transaction?
3. How would the accounts be in error if the adjusting entry was not recorded at all?
4. Most journal entries have a counterpart on the other side of the transaction. For example, if we are buying something from a supplier, it would be an expense to us, but revenue to the supplier. Considering this, what is the counterpart adjusting journal entry for the one that you have selected?