The adjusting entry to record an 3 points accrued revenue results in which of the following types of accounts being debited and credited? Asset/Revenue Expense/Asset Asset/Liability Expense/Liability 5 points Office Equipment was purchased on May 1, 2017 at a cost of P 140,000 with a salvage value of P20,000. The equipment's useful life is five years. How much is the depreciation expense on December 31, 2017. Php 24,000 Php 16,000 Php 10,000 Php 28,000 Represent revenue or income * 3 points already collected but not yet earned; also referred to as advances from customers. Accrued Income Unearned Revenue Service Revenue Sales Revenue On September 1,2017 , the company * 5 points collected P72,000 rent in advance. A debit to Cash and a credit to Unearned Revenue was made. The tenant was paying for one year's rent. How much is the Rental Revenue to be recorded in the adjusting entry on Dec. 31, 2017? Php 6,000 Php 30,000 Php 24,000 Php 36,000 CHS Hardware borrowed P120,0005 points at 12% interest on February 1, 2017. The amount will be paid after 1 year. No entry was entered in the journal to take up the interest. How much is the interest expense to be recorded on Dec. 31, 2017. Php 14,400 Php 12,000 Php 10,800 Php 13,200 On October 1, 2017 the company 5 points paid P 18,000 for a one-year insurance policy. Insurance Expense was debited and Cash was credited. The account to be debited and its amount to be recorded on Dec. 31 , 2017 is Insurance Expense/ Php 13,500 Insurance Expense/ Php 4,500 Prepaid Insurance/ Php 13,500 Prepaid Insurance/ Php 4,500 Adjusting Entries Refer to the expenses that are * 3 points already incurred, used, utilized or consumed but have not been paid. Prepaid Expenses Accrued Expenses Unearned Expenses Accounts Expense Refer to income or revenue already 3 points earned but has not yet been collected. Unearned Revenue Prepaid Income Accrued Income Service Revenue Represent advance payments made * 3 points for expenses which have not yet been incurred, used, utilized or consumed. Accrued Expenses Prepaid Expenses Unearned Expenses Accounts Expense The accounting concept which 3 points states that income is recognized when earned regardless of when collected and expense is recognized when incurred regardless of when paid. Matching Principle Time Period Accrual Deferral Refers to the allocation of the cost 3 points of the asset over its estimated useful life. Consumption Contra Asset Deterioration Depreciation Adjusting entries are necessary to * 3 points Update and correct the accounts at the end of the period record the sales of the period balance the books at the end of the period ensure the equality of the debits and credits It is prepared after adjusting entries 3 points are made and posted in the ledger. Income Statement Adjusted Trial Balance Balance Sheet Unadjusted Trial Balance The adjusting entry to record an 3 points accrued expense results in which of the following types of accounts being debited and credited? Asset/Revenue Expense/Asset Asset/Liability Expense/Liability . On Nov. 1, 2017, Ms. Cruz, owner of Labada Express, received P 60,000 as advance payment from Hotel Dolores for laundry of assorted garments. Assuming, 60% of the unearned revenue has been rended on Dec. 31,2017 , what is the account to be credited and its amount? Unearned Revenue/ Php 36,000 Unearned Revenue/ Php 24,000 Laundry Revenue/ Php 36,000 Laundry Revenue/ Php 24,000