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During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company must make three adjusting entries: (1) Accrue utilities expense, (2) Record salaries expense incurred for which the cash was paid in advance, and (3) Adjust the Unearned Services Revenue account to recognize earned revenue. For each of the adjusting entries (1), (2), and (3), indicate the account to be debited and the account to be credited—from a through i below.
Utilities expense
Accounts payable
Salaries expense
Prepaid salaries
Unearned service revenue
Service revenue
Plant Assets
Current assets
Cash
Adjusting entries:
1. Accrue utilities expense.
2. Record salaries expense incurred for which the cash was paid in advance.
3. Adjust the Unearned Services Revenue account to recognize earned revenue.
During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company must make three adjusting entries: (1) Accrue utilities expense, (2) Record salaries expense incurred for which the cash was paid in advance, and (3) Adjust the Unearned Services Revenue account to recognize earned revenue. For each of the adjusting entries (1), (2), and (3), indicate the account to be debited and the account to be credited—from a through i below.
Utilities expense
Accounts payable
Salaries expense
Prepaid salaries
Unearned service revenue
Service revenue
Plant Assets
Current assets
Cash
Adjusting entries:
1. Accrue utilities expense.
2. Record salaries expense incurred for which the cash was paid in advance.
3. Adjust the Unearned Services Revenue account to recognize earned revenue.
