Give an example of an adjusting journal entry for each of the following transactions- Equal growth...

Give an example of an adjusting journal entry for each of the following transactions-

Equal growth of an expense and a liability.

Earning of revenue that was previously recorded as unearned revenue.

Equal growth of an asset and revenue.

Increase in an expense and decrease in an asset.

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Expert Solution

Equal growth of an expense and a liability.

Accounts title	Debit	Credit
Interest Expense	$10,000.00
Interest Payable		$10,000.00
(to record interest accrued but not paid)

Earning of revenue that was previously recorded as unearned revenue.

Accounts title	Debit	Credit
Unearned Revenue	$10,000.00
Service Revenue		$10,000.00
(to record revenue earned that was previously recorded as 'unearned')

Equal growth of an asset and revenue.

Accounts title	Debit	Credit
Interest receivables	$10,000.00
Interest revenue		$10,000.00
(to record revenue earned but not received)

Increase in an expense and decrease in an asset.

Accounts title	Debit	Credit
Insurance Expense	$10,000.00
Prepaid Insurance		$10,000.00
(to record insurance of expired period)

ekkarill92 answered 11 months ago

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