Eaton Enterprises made the following adjusting journal entries on December 31, 1996. 1. 2. 3. Rent Expense Rent Payable Insurance Expense Prepaid Insurance Depreciation Expense Accum. Depr. 1,200 4. Interest Receivable 1,500 1,200 Interest Revenue 1,500 5,000 5. Unearned Revenue 200 5,000 Fees Earned 200 20,000 20,000 240 Part 2 Use, Measurement, and Mechanics of Financial Statements E5-12 (Classifying transactions) REQUIRED:

a. Give a brief explanation for each of the above entries.

b. Classify each of the above entries as either a cost expiration adjusting entry or an accrual adjusting entry.