Chapter 3, Problem S3.5SE

S3-5 Identifying types of adjusting entries

Learning Objective 3

A select list of transactions for Anuradha’s Goals follows.

Apr. 1	Paid six months of rent, $4,800.
10	Received $1,200 from customer for six-month service contract that began April 1.
15	Purchased a computer for $1,000.
18	Purchased $300 of office supplies on account.
30	Work performed but not yet billed to customer, $500.
30	Employees earned $600 in salaries that will be paid May 2.

For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries, deferred expense, deferred revenue, accrued expense, and accrued revenue.