Question

Identifying adjusting entries with explanations LO P1 For each of the following entries, 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 perlod's use of a prepaid expense.
H. To record payment of a prepaid expense.
I. To record this period's depreclation expense.
Journal Entries Explanation Debit Credit
Interest Expense C 1,000
Interest Payable 1,000
Depreciation Expense 4,000 4,000
Unearned Professional Fees Professional Fees Earned
3,000 3,000
Insurance Expense 4,200
Prepaid Insurance 4,200
Salaries Payable 1,400
Cash 1,400
Prepaid Rent 4,500
Cash 4,500
Salaries Expense 6,000
Salaries Payable 6,000
Interest Receivable 5,000
Interest Revenue 5,000
Cash 9,000
Accounts Receivable (from consulting)9,000
Cash Unearned Professional Fees 7,500 7,500
Cash 2,000 Interest Receivable 2,000
Rent Expense Prepaid Rent 2,000 2,000

Answer 1

Journal entries Debit Credit

Interest expenses $1000

Interest payable $1000

E. To record an accrued expense.

Depreciation expenses $4000

Accumulated depreciation $4000

I. To record this period's depreciation expense.

Unearned professional fees $3000

Profession fees earned $3000

B. To record this period's earning of prior unearned revenue.

Insurance expenses $4200

Prepaid insurance $4200

G. To record this period's use of a prepaid expense.

Salaries payable $1400

Cash $1400

C. To record payment of an accrued expense.

Prepaid rent $4500

Cash $4500

H. To record payment of a prepaid expense.

Salaries expenses $6000

Salaries payable $6000

E. To record an accrued expense.

Interest receivable $5000

Interest revenue $5000

F. To record an accrued revenue.

Cash $9000

Accounts receivable $9000

D. To record receipt of an accrued revenue.

Cash $7500

Unearned professional fees $7500

A. To record receipt of unearned revenue.

Cash $2000

Interest receivable $2000

D. To record receipt of an accrued revenue.

Rent expenses $2000

Prepaid rent $2000

G. To record this period's use of a prepaid expense.