Adjusting entries affect at least one balance sheet account

Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entrie below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the incom statement account and which is the balance sheet account. Assume the company records prepayments of expenses asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record consulting services performed but not yet billed (nor recorded). b. Entry to record Interest revenue earned but not yet collected (nor recorded). c. Entry to record service revenues performed but not yet billed (nor recorded). d. To record janitorial expense incurred but not yet paid. e. To record rent expense incurred but not yet paid Accounts Account Title Financial Statement Balance sheet a. Account to be debited Accounts receivable Account to be credited Consulting services revenue b. Account to be debited nterest receivable income statement alance sheet Income statement Balance sheet Income statement Income statement Account to be credited interest revenue earned c. Account to be debited Accounts receivable Account to be credited Services revenue earned d. Account to be debited Janitorial expense Account to be credited Accrued expenses payable Blnce sheet e. Account to be debited Rent expense ncome statement Account to be credited Accrued expenses payable alance sheet Please let me know if my answers a. through e. are correct for Account Title\" and for \"Finnacial Statement?\"

Solution

All the under entries are correct if company follow accrual concept of accounting. ACCOUNTS ACCOUNT TITLE FINANCIAL STATEMENT a account to be debited accounts receivable Balance sheet account to be credited consulting services income statement b account to be debited Interest receivable Balance sheet account to be credited interest earned income statement c account to be debited accounts receivable Balance sheet account to be credited service revenue earned income statement d account to be debited Janotoreal expense income statement account to be credited accrued expense payable Balance sheet e account to be debited rent expense income statement account to be credited accrued expense payable Balance sheet