Qs 315 Preparing adjusting entries LO4 stark Company records

Qs 3-15 Preparing adjusting entries LO4 stark Company records prepay in liability accounts. U each of the annual adjustments described in (a) through ( ments of expenses in asset accounts and receipts of unearned revenues sing the list of accounts provided, identify the debit and credit entru required for e). The first one is done as an example. 1. Cash 2. Prepaid Advertising 3. Advertising Payable 4. Advertising Expense 5. Accounts Receivable 6. Equipment Expense 7. Depreciation Expense 8. Accumulated Depreciation-Equipment 9. Equipment 10. Services Revenue 11. Unearned Services Revenue Debits Credits Example: Accrual of uncollected and unrecorded services revenue. 5 a. Accrual of unpaid and unrecorded advertising that was used by Stark Company. b. Adjustment of Unearned Services Revenue to recognize earned revenue Recorded revenue for work completed this accounting period; the cash will be received in the next period. e. d. The cost of Equipment was matched to the time periods benefited. e. Adjustment of Prepaid Advertising to recognize the portion used

Solution

3-15) Debit Credit a Advertising Expenses Advertising payable b Unearned Services Revenue Earned Revenue c Accounts Receivable Services Revenue d Depreciation expense Accumulated Depreciation-Equipment e Advertising Expenses Prepaid Advertising