Question

Classify the following adjusting entries as involving prepaid expenses, unearned revenues, accrued expenses, or accrued revenues. a. To record rent expense incurred but not yet paid. | b. To record cash received from gift card sales. c. To record service revenues performed but not yet billed (nor recorded). d. To record expiration of prepaid rent. e. To record supplies used as supplies expense.

Answer 1

A	to record rent expense incurred but not yet paid	accrued expenses
B	to record cash received from gift card sales	Unearned Revenue
C	to record service revenues performed but not yet billed	accrued revenues
D	to record expiration of prepaid rent	prepaid expenses
E	to record supplies used as supplies expense	accrued expenses

Accrued expenses are the expenses which have been incurred but yet not paid or recorded.

Unearned revenue is a liability account whicj reports tje amount received in advance but service or sale yet not done.

Accrued revenues are used for services provided but payment not billed.

Prepaid expenses are used for payments already done for expenses yet to be incurred.