In the blank space beside each adjusting entry enter the let

In the blank space beside each adjusting entry, enter the letter of the explanation A through Fthat most closely describes the entry A To record this period\'s depreciation expense. B. To record accrued salaries expense. C. To record this period\'s use of a prepaid expense D. To record accrued interest revenue E. To record accrued interest expense. F. To record the earning of previously unearned income. 2,208 Interest Payable 2,208 3,180 Prepaid Insurance 3.180 Unearned Professional Fees19.250 19.250 3,300 3,300

Solution

1. E (To record accrued interest expense.)

The entry is for accrued interest expense as Interest expense is debited because it is an expense and Interest payable is credited because we will have to pay it in the future.

2. C (To record this period use of Prepaid expense.)

This is the entry for adjustment of prepaid insurance to Insurance expense. Insurance is debited because it is an expense and Prepaid insurance is credited because we are adjusting previously paid prepaid insurance to current year insyurance.

3. F (To record the earnings of previously unearned income)

We must have credited unearned income when we had received it but now when the income is due, we are adjusting the unearned income by Debiting the Unearned income and Crediting the Income.

4. D (To record accrued interest revenue)

The entry is for accrued interest revenue as Interest receivable is debited because it is an income and we will receive in the future and Interest revenue is credited because it is an Income.

As For A, Entry will be

Depreciation (Dr.)

Accumulated Depreciation (Cr.)

And, B, Entry will be

Salary Expense (Dr.)

Salary payable (Cr.)