Chapter 3, Problem 15QS

Recording and analyzing adjusting entries P1

Adjusting entries affect at least one balance sheet account for at least one income statement account. For the entries below, identify the account to the debited and the account to be credited from the following account; Cash; Account Receivable; Prepaid Insurance; Equipment; Accumulated Depreciation; Wages Payable; Unearned Revenue ; Wages Expense; Insurance Expense; Depreciation Expense. Indicate which of the accounts is the income statement account and which is the balance sheet account.

1. Entry to record revenue earned that was previously received as a cash in advance.
2. Entry to record wage expenses incurred but not yet paid (not recorded).
3. Entry to record revenue earned but not yet billed (not recorded).
4. Entry to record expiration of prepaid insurance.
5. Entry to record annual depreciation expense.