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. B a. Entry to record revenue earned but not yet billed (nor recorded). b. Entry to record expiration of prepaid insurance. c. Entry to record interest expense incurred but not yet paid. d. Entry to record expiration of prepaid rent. e. Entry to record supplies used as supplies expense, Accounts Financial Statement Account Title Accounts receivable Balance sheet 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 Income statement

Answer 1

a. b. C. Accounts Account Title Financial Statement Account to be debited Accounts Receivable Balance Sheet Account to be credited Revenue Earned Income Statement Account to be debited Insurance expense Income Statement Account to be credited Prepaid Insurance Balance Sheet Account to be debited Interest Expense Income Statement Account to be credited Interest Payable Balance Sheet Account to be debited Rent Expense Income Statement Account to be credited Prepaid Rent Balance Sheet Account to be debited Supplies Expense Income Statement Account to be credited Supplies. Balance Sheet d. e. Note : Please comment down for any further clarifications