Question

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.
Interest Expense 2,208
Interest Payable 2,208
Insurance Expense 3,180
Prepaid Insurance 3.180
Unearned Professional Fees19,250
Professional Fees Earned 19,250
Interest Receivable 3,300
Interest Revenue 3,300

Answer 1

Answer: Please refer to Explanation

Explanation:

A. To record this period's depreciation expense. will match with

5. Depreciation Expense 38,217 Accumulated Depreciation 38,217

When recording the depreciation for the period, depreciation account is debited as it as an expense and an increase in Expenses is debited. The figure is credited to the Accumulated Depreciation account as it will reduce the Assets Account.

B. B. To record accrued salaries expense

6. Salaries Expense 13,280

Salaries Payable 13,280

As an expense, salaries are debited to show that they have increased. Salaries Expense account will therefore be debited for 13,280. The credit will be sent to the Salaries Payable account which is a liability account to show that the company owes those salaries as a liability.

C. To record this period's use of a prepaid expense

Insurance Expense 3,180

Prepaid Insurance 3,180

To record that the prepaid expense has now been used, the insurance expense account is debited and because Prepaid Expense is an asset, reducing it will be done by Crediting it.

D. To record accrued interest revenue

Interest Receivable 3,300

Interest Revenue 3,300

Revenue is credited when it increases so the Interest Revenue Account for the period will be credited. The Interest Receivable account will be debited because it is being reduced and as a revenue account reduces by debiting.

E. To record accrued interest expense

Interest Expense 2,208

Interest Payable 2,208

Insurance is an expense and so when it is being accounted for in the period, it is debited. It is credited to the Interest Payable account because it is a Liability account which increases by credit.

F. To record the earning of previously unearned income.

Unearned Professional Fees 19,250

Professional Fees Earned 19,250

As the Professional fees are revenue, they will be credited to the Professional Fee Earned account to show that it is an increase in revenue.