Question

Types of Adjustments (each worth I point) Match the statements below with the appropriate terms by entering the appropriate letter code in the spaces provided. A. Prepaid Expenses B. Unearned Revenues C. Accrued Revenues D. Accrued Expenses 1. Revenue not earned but money collected in advance. 2. Supplies that will be used in the next month. 3. An expense incurred but not yet paid or recorded. 4. Revenue earned but money not collected. 5. An expense not yet incurred but paid in advance. 6. Depreciation on a building or equipment.

Answer 1

Answer-

1 Revenue not in Advance Revenue. It Receipient. is debil to to unearned earned but money Collected is treated as an unearned is a Liability for the So the initial Entry is the Cash Account and Credit Income Account Supplies that will be used in next month is treated as Accrued Revenue. Is has shown as on Assets in the balance sheet. 3 A Expense Incurred but not tex paid or Recorded is treated as Auryed Expense. They are shown on Balance sheet of current liabilities, 4 Revenue cained but money not collected is treated as Acclyed Revenue . s hy shown as an Asset in the balance Sheef.

5.) A Erpense not yet Incursed but faid in advance is treated as Prepaid Expense. It has shown as current Assets in balance Sheet. 6) Depreciation on a building or Ecenilment is treated as a Expense It reduces the value of building. The initial Entry of Depreciation is given below. I pebit Credit Depreciation Account Di to Accumulated Depreciation All a Accumulated Repreciation Account is holds all the depreciation you have recorded since you purchased the building. Accumulated depreciation Account is an Asset Alcourt.