Chapter 3, Problem 15QS

Recording and analysing adjusting entries
A1

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 from the following accounts: Cash; Accounts Receivable; Prepaid Insurance; Equipment; Accumulated Depreciation; Wages Payable; Unearned Revenue; Revenue; Wages Expense; Insurance Expense; Depreciation Expense. Indicate which of the accounts is the income statement account and which is the balance sheet account.
a. Entry to record revenue earned that was previously received as cash in advance.
b. Entry to record wage expenses incurred but not yet paid (nor recorded).
C. Entry to record revenue earned but not yet billed (nor recorded).
d. Entry to record expiration of p repaid insurance.
e. Entry to record annual depreciation expense.