Question

Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entrie below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the incom statement account and which is the balance sheet account. Assume the company records prepayments of expenses asset accounts, and cash receipts of unearned revenues in liability accounts.
a. Entry to record consulting services performed but not yet billed (nor recorded).
b. Entry to record Interest revenue earned but not yet collected (nor recorded).
c. Entry to record service revenues performed but not yet billed (nor recorded).
d. To record janitorial expense incurred but not yet paid.
e. To record rent expense incurred but not yet paid
Accounts Account Title Financial Statement
a. Account to be debited Accounts receivable Balance sheet
Account to be credited Consulting services revenue Income statement
b. Account to be debited Interest receivable Balance sheet
Account to be credited interest revenue earned Income statement
c. Account to be debited Accounts receivable Balance sheet
Account to be credited Services revenue earned Income statement
d. Account to be debited Janitorial expense Balance sheet
Account to be credited Accrued expenses payable Income statement
e. Account to be debited Rent expense Balance sheet
Account to be credited Accrued expenses payable Income statement

Answer 1

Answer and Explanation:

According to the given situation, the income statement and balance sheet as per parts is shown below:-

                        Accounts               Account Title       Financial statements  

For Part A

Debit           Accounts receivable       Liability account      Balance sheet

Credit            Consulting service       Income statement

                        revenue

For Part B

Debit           Interest receivable          Liability account    Balance sheet

Credit            Interest revenue           Income statement

                         

For Part C

Debit           Accounts receivable    Assets account        Balance sheet

Credit            Service Revenue      Income statement

For Part D

Debit           Janitorial expense    Income statement

Credit           Janitorial expense   Liability account        Balance sheet

                         Payable

For Part E

Debit           Rent expenses          Income statement      

Credit          Rent expenses           Liability account        Balance sheet

                     payable