Question

If adjusting entries include these listed accounts, what other account must be in that entry as well? (A) Depreciation expense; (B) Unearned Service Revenue; (C) Prepaid Insurance; (D) Interest Payable.

a) (A) Accumulated Depreciation; (B) Service Revenue; (C) Insurance Expense; (D) Interest Expense.
b) (A) Depreciation Expense; (B) Service Revenue; (C) Insurance Expense; (D) Interest Expense.
c) (A) Accumulated Depreciation; (B) Service Revenue; (C) Insurance Expense; (D) Interest Payable.
d) (A) Depreciation Expense; (B) Unearned Revenue; (C) Insurance Expense; (D) Interest Expense.

Answer 1

The correct accounts to pair with (A) Depreciation Expense, (B) Unearned Service Revenue, (C) Prepaid Insurance, and (D) Interest Payable are (A) Accumulated Depreciation, (B) Service Revenue, (C) Insurance Expense, and (D) Interest Expense respectively.

Step-by-step explanation:

When making adjusting entries in accounting, certain accounts are used in conjunction with others to reflect changes in financial statements accurately. The correct combinations for the listed accounts are:

• (A) Depreciation Expense with Accumulated Depreciation
• (B) Unearned Service Revenue with Service Revenue
• (C) Prepaid Insurance with Insurance Expense
• (D) Interest Payable with Interest Expense

Therefore, the correct answer is a) (A) Accumulated Depreciation; (B) Service Revenue; (C) Insurance Expense; (D) Interest Expense. Each of these is the corresponding account needed to balance the entry.