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In: Accounting

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.

Solutions

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 1 year ago
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