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 Interest revenue earned but not yet collected (nor recorded). b. Entry to record service revenues performed but not yet billed (nor recorded). c. Entry to record janitorial expense incurred but not yet paid. d. Entry to record rent expense incurred but not yet paid. e. Entry to record interest expense incurred but not yet paid. Account Title Financial Statement Accounts a. Account to be debited Account to be credited b. Account to be debited Account to be credited c. Account to be debited Account to be credited d. Account to be debited Account to be credited e. Account to be debited Account to be credited

Answer 1

	Accounts	Account Title	Financial Statements
a.	Account to be debited	Interest receivable	Balance Sheet
	Account to be credited	Interest revenue	Income Statement
b.	Account to be debited	Accounts receivable	Balance Sheet
	Account to be credited	Service revenue	Income Statement
c.	Account to be debited	Janitorial expense	Income Statement
	Account to be credited	Janitorial expense payable	Balance Sheet
d.	Account to be debited	Rent expense	Income Statement
	Account to be credited	Rent payable	Balance Sheet
e.	Account to be debited	Interest expense	Income Statement
	Account to be credited	Interest payable	Balance Sheet