Adjusting Entries

Question 1

Prepaid Expenses include:

Answer 1

Supplies, insurance, depreciation

Question 2

Prepaid expenses

Answer 2

Assets overstated, expenses understated
Debit expenses, credit assets (or contra assets for depreciation)

Question 3

Unearned revenues are:

Answer 3

Money paid for a service not yet performed

Question 4

Unearned revenues

Answer 4

Liabilities overstated, revenues understated
Debit liabilities, credit revenues

Question 5

Accrued revenues are:

Answer 5

Services performed, money not yet paid

Question 6

Accrued revenues

Answer 6

Assets understated, revenues understated
Debit assets, credit revenues

Question 7

Accrued expenses are…

Answer 7

Expenses incurred but not yet paid

Question 8

Accrued expenses

Answer 8

Expenses understated, liabilities understated
Debit expenses, credit liabilities

Question 9

Supplies (prepaid expense)

Answer 9

Debit supplies expense, credit the supplies account

Question 10

Insurance (prepaid expense)

Answer 10

Debit insurance expense, credit prepaid insurance

Question 11

Depreciation

Answer 11

Credit contra assets, debit depreciation expense