For each of the following entries select the letter of the e

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 period\'s use of a prepaid expense. H. To record payment of a prepaid expense. I. To record this period\'s depreciation expense.

Solution

Explanation

Journal Entries

Debit

Credit

E

Interest Expense

1000

Interest Payable

1000

I

Depreciation Expense

4000

Accumulated Depreciation

4000

B

Unearned Professional Fees

3000

Professional Fees Earned

3000

G

Insurance Expense

4200

Prepaid Insurance

4200

C

Salaries Payable

1400

Cash

1400

H

Prepaid Rent

4500

Cash

4500

E

Salaries Expense

6000

Salaries Payable

6000

F

Interest Receivable

5000

Interest Revenue

5000

D

Cash

9000

Accounts Receivable (from consulting)

9000

A

Cash

7500

Unearned Professional Fees

7500

D

Cash

2000

Interest Receivable

2000

G

Rent Expense

2000

Prepaid Rent

2000

Explanation	Journal Entries	Debit	Credit
E	Interest Expense	1000
Interest Payable		1000
I	Depreciation Expense	4000
Accumulated Depreciation		4000
B	Unearned Professional Fees	3000
Professional Fees Earned		3000
G	Insurance Expense	4200
Prepaid Insurance		4200
C	Salaries Payable	1400
Cash		1400
H	Prepaid Rent	4500
Cash		4500
E	Salaries Expense	6000
Salaries Payable		6000
F	Interest Receivable	5000
Interest Revenue		5000
D	Cash	9000
Accounts Receivable (from consulting)		9000
A	Cash	7500
Unearned Professional Fees		7500
D	Cash	2000
Interest Receivable		2000
G	Rent Expense	2000
Prepaid Rent		2000