Problem 3-1A Identifying adjusting entries with explanations LO P1, P2, P3, P4 For journal entries 1 through 12, select the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once. A. To record receipt of unearned revenue. B. To record this period's earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue. G. To record this period's use of a prepaid expense. H. To record payment of a prepaid expense. 1. To record this period's depreciation expense. Explanation Credit Entry 1 Journal Entries Cash Accounts Receivable (from consulting) Debit 2,500 2,500 3,200 Cash Unearned Professional Fees 3,200 3,700 Cash Interest Receivable 3,700 4,800 Rent Expense Prepaid Rent 4,800 Prepaid Rent 4,800 Interest Expense Interest Payable 1,700 5,000 Depreciation Expense Accumulated Depreciation 5,000 6,600 Unearned Professional Fees Professional Fees Earned 6.600 4,500 Insurance Expense Prepaid Insurance 4,500 8,100 Salaries Payable Cash 8,100 7,800 Prepaid Rent Cash 7,800 1,900 Salaries Expense Salaries Payable 1,900 1,200 Interest Receivable Interest Revenue 1,200