Question

Problem 3-1A Identifying adjusting entries with explanations LO P1, P2, P3, P4 For journal entries 1 through 12, select the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once. A. To record receipt of unearned revenue. B. To record this period's earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue. G. To record this period's use of a prepaid expense. H. To record payment of a prepaid expense. 1. To record this period's depreciation expense. Explanation Credit Entry 1 Journal Entries Cash Accounts Receivable (from consulting) Debit 2,500 2,500 3,200 Cash Unearned Professional Fees 3,200 3,700 Cash Interest Receivable 3,700 4,800 Rent Expense Prepaid Rent 4,800

Answer 1

Entry	Explantion	Journal entries	Debit	Credit
1	D	Cash	2500
		Accounts Receivble(from consulting)		2500
2	A	Cash	3200
		Unearned professional fees		3200
3	D	Cash	3700
		Interest Receivable		3700
4	G	Rent expense	4800
		Prepaid rent		4800
5	E	Interest expense	1700
		Interest payable		1700
6	I	Depreciation Expense	5000
		Accumlated depreciation		5000
7	B	unearned professional fees	6600
		Professional fee earned		6600
8	G	Insurance expense	4500
		Prepaid insurance		4500
9	C	Salaries payable	8100
		Cash		8100
10	H	Prepaid rent	7800
		Cash		7800
11	E	Salaries expense	1900
		Salaries payable		1900
12	F	Interest receivable	1200
		Interest revenue		1200