Understanding the alternative treatment of prepaid expenses and unearned revenues Night Flyer pack'n Mail completed the following transactions during 2016: Journalize the transactions assuming that Night Flyer debits an asset account for prepaid expenses and credits a liability account for unearned revenues. Journalize the related adjusting entries at December 31, 2016. Post the journal and adjusting entries to the T-accounts, and show their balances at December 31, 2016. (Ignore the Cash account.) Repeat Requirements 1-3. This time, debit an expense account for prepaid expenses and credit a revenue account for unearned revenues. Compare the account balances in Requirements 3 and 4. They should be equal