Question

Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below. Identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record revenue earned that was previously received as cash in advance. b. Entry to record wage expenses incurred but not yet paid (nor recorded) c. To record Interest expense incurred but not yet paid d. To record expiration of prepaid rent e. To record supplies used as supplies expense. Accounts Account Title Financial Statement B Account to be dead Account to be credited b Account to be debited Account to be credited Account to be debited Account to be credited d Account to be debited Account to be credited Account to be debited Account to be credited

Answer 1

Answer

	Accounts	Account Title	Financial Statement
a.	Account to be debited	Unearned Revenue	Balance Sheet
	Account to be credited	Revenue	Income Statement
b.	Account to be debited	Wages expense	Income Statement
	Account to be credited	wages outstanding	Balance Sheet
c.	Account to be debited	Interest expense	Income Statement
	Account to be credited	Outstanding Interest	Balance Sheet
d.	Account to be debited	Rent expense	Income Statement
	Account to be credited	Prepaid rent	Balance Sheet
e.	Account to be debited	Supplies expenses	Income Statement
	Account to be credited	Supplies	Balance Sheet

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