Question
Stark Company records prepayments of expenses in asset accounts and receipts of unearned revenues in liability accounts. Identify the debit and credit entry required for
Stark Company records prepayments of expenses in asset accounts and receipts of unearned revenues in liability accounts.
Identify the debit and credit entry required for each of the annual adjustments described in (a) through (f), and drag and drop the correct account (example: ) to the matching gap ()
Hint: you can use some accounts more than once
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DebitsCreditsa.Accrual of uncollected and unrecorded services revenue.Accounts Receivableblankb.Accrual of unpaid and unrecorded advertising that was used by Stark Company.blankblank c.Adjustment of Unearned Services Revenue to recognize earned revenue. blankblankd.Recorded revenue for work completed this accounting period; the cash will be received in the next period.blankblanke.The cost of Equipment was matched to the time periods benefited.blankblankf.Adjustment of Prepaid Advertising to recognize the portion used.blankblank
Services Revenue Advertising Expense Advertising Payable Unearned Services Revenue Services Revenue Accounts Receivable Services Revenue Depreciation Expense Accumulated DepreciationEquipment Advertising Expense Prepaid Advertising Cash Equipment Expense Equipment
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