b) Accounts receivable will be debited for $500. If an adjusting entry for unearned revenue is not recorded, what is the effect on the financial statements? Course Hero is not sponsored or endorsed by any college or university. (Check all that apply.). By the end of the accounting period, the loan had been outstanding for 30 days. Chimney's customers owe $2,000 to Chimney. b) Profit margin is the ratio of a business's net income to its accounts receivables. Notes receivable and stock and bond investments are assets that are expected to be held for more than one year. d) $73.97. -Plant assets are equipment and other assets that have a life greater than one year. (Check all that apply.). Which of the following is the proper adjusting entry? -Plant assets are property, plant and equipment that are tangible. (Check all that apply.). Accounts receivable is not involved. Sharper declares and immediately distributes a 50% stock dividend. f) Accounts are generally listed in the same order as listed in the chart of accounts. Rather than debiting an asset account, which of the following statements explains an alternate recording procedure to journalize prepaid expenses, such as prepaid rent or supplies. (The Supplies account was increased at the time of the initial purchase.) -Entering the unadjusted balance for each account in the correct Debit or Credit columns of the Unadjusted Trial Balance columns. b) Unearned revenues refer to cash received in advance of providing a service or product. The adjusted trial balance includes all accounts and balances appearing in financial statements. c) Cash, building, equipment What is the purpose of the Accumulated Depreciation account? Demonstrate the required adjusting entry by completing the following sentence. Michelle Walker started her own consulting firm, Walker Consulting, on May 1, 2020. What percentage of total revenues is the short-term unearned revenue? 5a. After an adjusted trial balance is prepared, what is the next step in completing the work sheet used in preparing financial statements? The formula to figure out the profit margin of a company is ______ (Net income/Accounts receivable/Net sales) divided by _______ (Net income/Cash/Net sales). A reversing entry: (Check all that apply). Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation. In some cases, bankruptcy may be the only course available. It is estimated that it will have a life of 5 years and zero salvage value. a) a list of accounts and balances before adjusting entries have been recorded and posted A. \end{array} Examples of accrued expenses are wages expense and interest expense. (Check all that apply.). e) Salaries payable will be credited for $500. a) Debit accounts receivable and credit services revenue They refer to revenues that are earned in a period, but have not been received and are unrecorded. b) Wages expense will be debited for $4,000. An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. Accounts receivable is usually increased when accruing revenues. (Check all that apply.). They refer to cash received in advance of performing a service or product. At the end of the previous year, a customer owed Chocolates R US $500. Depreciation, Depletion and Amortization explanat b) $199.26 We reviewed their content and use your feedback to keep the quality high. b) Any unused prepaids existing at end of period are transferred to asset accounts. a) Cash will be debited for $900. Remember revenue is only recognized if a service or product is delivered, a refund nulls recognition. Demonstrate your understanding of adjusting for prepaid expenses by selecting the statement that is correct. Demonstrate your knowledge of preparing an adjusted trial balance by selecting the correct statement below. (Check all that apply.) Unearned revenues refer to income reported on the income. Accumulated depreciation is a contra account. (The Supplies account was increased at the time of the initial purchase.) Blank 2: credit c) Equipment was purchased in the middle of the year. Which of the following defines long-term liabilities? Unearned revenues refer to amounts owed to the company that have not yet been billed. For the current year, Bubbles Office Supply had earned $600 of interest on investments. a) Debit Catering revenue for $600. Russia has nearly doubled its revenues from selling fossil fuels to the EU during the two months of war in Ukraine, benefiting from soaring prices even . the ______ rial balance is prepared by combining the adjustments in the Adjustments columns with the balances for each account listed on the _______ trial balance. credit ___ 2. Supplies expense would be debited for $300. Illustrate your understanding of how to use the adjusted trial balance to prepare an income statement by completing the following sentence. Fred is an avid user of Amazon.coms services. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. e) Service revenue would be credited for $400. Accounts receivable would be debited for $700. b) Service revenue would be credited for $700. -Depreciation is recorded through an adjusting entry. Credit Unearned revenues for $400. They refer to earnings which have been earned, but not yet billed. a) An adjusted trial balance is a list of accounts and balances prepared before adjustments are posted. (Check all that apply.). Explain what unearned revenues are by selecting the statements below which are correct. $21,000 of equipment is purchased on December 1. a. -The adjustment causes an increase in an asset account and an increase in a revenue account. a) Accounts receivable is usually increased when accruing revenues. Select the statements below that describe the purpose of a post-closing trial balance. Adjustments involve increasing both an expense and a liability account. Define the Salaries payable account by selecting the appropriate statement below. Source: American Journal of Preventive Medicine 424242 (June 2012):5635702012):563-5702012):563570. It would be credited for $700. is used to simplify record keeping A plant asset refers to a long-term tangible asset used to produce and sell products or services. Which of the following statements about the Accumulated depreciation account is (are) correct? Which of the accounts below are considered accrued expenses? They are reported on an income statement. Salaries payable will be debited for $500. What is the difference between an adjusted trial balance and an unadjusted trial balance? Not recording an accrued expense will have the following effect on the financial statements: (Check all that apply). Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Rather than crediting the Unearned rent account for $400 of prepaid rent received from a customer, which of the following statements explains an alternate recording procedure to journalize this receipt? Franchise, Identify the accounts below that would be classified as intangible assets on a classified balance sheet. -The Accumulated depreciation account allows the original cost of the asset to remain in the plant asset account. It paid $25,000 for the car. By the end of the year, $400 had been earned. They refer to cash received in advance of performing a service or product. (Check all that apply. For Amazon, Freds payment ($79) is unearned revenue since the company receives the full payment in advance while none of the services have been provided to Fred yet. The journal entry to record the payment of salaries on January 4 includes: Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000. In this free session, the client explains her or his situation, and the attorney evaluates the options. Supplies would be debited for $300. f) An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. (Check all that apply.). The expense recognition (matching) principle aims to record ________ in the same accounting period as the ________ that are earned as a result of those costs. The journal entry on February 1 is? They are also called deferred revenues. Property, Plant and Equipment explanation, calcul The payment amount of $27,000 will be recorded under cash,increasing the assets, and under unearned revenue, increasing long-term liabilities. -Helps in the preparation of financial statements Cash would be credited for $4,000. Below is an example of Amazon's 2017 income statement. It can help with adjusting and closing accounts and with preparing financial statements. Closing means to bring an account balance to zero. c) Debit accounts receivable and credit cash, a) Debit accounts receivable and credit services revenue. (Check all that apply. b) Any unused prepaids existing at end of period are transferred to asset accounts. b) Examples of accrued expenses are wages expense and interest expense. Debit Unearned revenues for $600. (Check all that Which of the following is the proper adjusting entry? c) $200 d) $800. Examples of accrued expenses are wages expense and interest expense. c) Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. c) A revenue account will be increased. The recognition of deferred revenue is quite common for insurance companies and software as a service (SaaS) companies. They are reported on a balance sheet. Cash will be debited for $600. An adjusted trial balance e) The debit and credit column totals must balance. \text{Paid-in capital in excess of par value, common stock}&\text{200,000}\\ -Supplies were purchased at the beginning of the year, but not all were used. Calculate the amount of interest to accrue if the loan has been outstanding for 45 days. Unearned revenue would be debited for $700. D) The normal balance of an expense account is a credit. -The adjustment can be added to a blank line. Demonstrate the required adjusting entry by completing the following sentence. No matter how an unearned revenue was initially recorded, after the adjusting entry, net income will be identical. b) If prepaid expense was initially recorded as an asset, then assets will be higher on the balance sheet. -Any unused prepaids existing at end of period are transferred to asset accounts. e) Total assets will be increased. $1,000 of cash was received in advance of performing services. (Check all that apply.). a) An asset will be increased. -The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods or services. d) Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000, d) Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000, Not recording an adjusting entry for accrued revenue will result in: (Check all that apply). (Check all that apply.) b. The term is used in accrual accounting, in which revenue is recognized only when the payment has been received by a company AND the products or services have not yet been delivered to the customer. B. Contra asset is an account shown as an addition to the asset. Demonstrate the required adjusting entry by choosing the correct statement below. They are reported on a balance sheet. They refer to earnings which have been earned, but not yet billed. $1,000 of cash was received in advance of performing services. Which of the following is the correct adjusting entry? ( ) They are a liability. Which of the following statements accurately explains how to enter adjustments? c) Balance sheet, income statement, statement of owner's equity, statement of cash flows When preparing an income statement, revenues will always come before expenses in the presentation. a) Unearned revenues refer to income reported on the income statement. d) liabilities on the balance sheet will be understated. According to Allan Johnson, what does sociological practice offer? Accounting for a refund differs from a reversal. -Record all prepaid expenses with debits to expense accounts. On December 31, interest expense should be accrued for the following period: -a 24-month insurance policy was prepaid, Determine which of the following transactions may require adjustments. Demonstrate the required adjusting journal entry by selecting from the choices below. -Permanent accounts are reported on the balance sheet. is optional. Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. b) Credit Interest expense for $30. Commonstock-$10parvalue,50,000sharesissuedandoutstandingPaid-incapitalinexcessofparvalue,commonstockRetainedearningsTotalstockholdersequity$500,000200,000660,000$1,360,000. By the end of the year, $400 had been earned. Which of the following accounts is considered a prepaid expense? An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. A business has a $5,000 loan from a bank at 16% annual interest. b) Credit to Salaries Payable for $500; Credit to Salaries Expense for $2,000 If accounts are adjusted at the end of each month, the relevant journal entries are given below: Entry on January 01 when advance payment is received: Adjusting entry on January 31 to convert a portion of unearned revenue (a liability) to earned revenue: (3). For the Hawkins Company, the monthly percentages of all shipments received on time over the past 12 months are 80, 82, 84, 83, 83, 84, 85, 84, 82, 83, 84, and 83. $1,000 of supplies were purchased at the beginning of the month. c) Record receipt with a credit to the Rent revenue account. b) Debit Interest receivable for $600. Explain how to add adjustments to a work sheet when more than one adjustment is required: (Check all that apply.). Commonstock-$10parvalue,50,000sharesissuedandoutstanding$500,000Paid-incapitalinexcessofparvalue,commonstock200,000Retainedearnings660,000Totalstockholdersequity$1,360,000\begin{array}{lr} (Check all that apply.). Reason: On June 30, Sharper Corporation's stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. c) December 1 to December 31 a) revenue being understated b) The adjustment causes an increase in an asset account and an increase in a revenue account. Structured Query Language (known as SQL) is a programming language used to interact with a database. Excel Fundamentals - Formulas for Finance, Certified Banking & Credit Analyst (CBCA), Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM), Commercial Real Estate Finance Specialization, Environmental, Social & Governance Specialization, CFIs Advanced Financial Modeling & Valuation Course, Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM). They refer to costs that are incurred in a period, but are both unpaid and Username * E-Mail * Password * Confirm Password * Captcha * 33:5-33+11*3-11:3 = ? (Check all that apply.). Use a 360 day year. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. c) increase the cash account at period-end, b) remove the unearned amount to a liability account, Chapter 8 Accounting for Long-Term Assets, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, James F. Sepe, J. David Spiceland, Mark W. Nelson, Wayne Thomas. Match the statements below with the appropriate terms: A. Prepaid Expenses B. Unearned Revenues C. Accrued Revenues D. Accrued Expenses Statements: 1. Multiple select question. b) Accounts receivable will be credited for $400. (Check all that apply.). The required adjusting journal entry on December 31 includes a: (Check all that apply.). Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Fundamentals of Financial Management, Concise Edition, Unit 3 | Standard 3 | Basic Organization and, Social Studies Chapter 19 Study Guide - Mill. Six months of rent were paid in advance. Statement of Owner's Equity (Retained Earnings) Determine which of the following transactions may require adjustments. They are reported on a balance sheet. Debit Interest expense for $30. Stock Retained Earnings 9 2 Accounts Receivable 3 Paper Supplies 4 Copy Machines 5 Accounts Payable 6 Note Payable . Credit A depreciation adjustment would include a debit to ______ (depreciation expense/accumulated depreciation/building) and ______(debit/credit) to ____depreciation expense/accumulated depreciation/building). (Check all that apply.) g) Six months of rent were paid in advance. It reports amounts owed to employees and is an asset. Multiple select question. -Depreciation is recognized at the end of an accounting period. a) Salaries expense would be debited for $3,500. (Check all that apply.). a) Profit margin is also called return on sales. (Check all that apply.). An income statement shows the organization's financial performance for a given period of time. O An asset on the balance sheet. (Check all that apply.) Demonstrate the required adjusting journal entry by selecting from the choices below. a) Salaries expense would be debited for $3,500. Unearned revenues refer to customer payments which have not yet been received. Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation. Unearned revenues refer to income reported on the income statement. Which of the following is (are) true regarding timeliness and the importance of periodic reporting? c) Record receipt with a credit to the Rent revenue account. -Notes receivable due in 2 years The required adjusting journal entry will Which of the following accounts would be considered a prepaid expense or prepaid asset account? What does this trend signal? Beginning of vear End of vear 14,000 Accounts receivable Inventories Prepaid insurance Prepaid rent Accounts payable Wages payable Unearned rent revenue $10,000 21,000 1,000 2.000 11,000 14,000 9,000 19,000 2,000 1.000 12,000 13,000 7,000 The income statement for the year contains the following: Rent revenue Sales revenue Cost of goods sold Insurance expenSe Rent expense Wages expense 21,000 . b) January 15 Indicate each account affected, whether the account is increased of the amount of the increase or decrease. (Check all that apply. Calculate the amount of interest to accrue if the loan has been outstanding for 90 days. Examples of accrued expenses are wages expense and interest expense. ), Which of the accounts below would be classified as long-term or fixed assets? Some bankruptcy The following table shows the percent of obese Americans who are severely obese for selected years from 199019901990 and projected to 203020302030. What are current liabilities? c) Debit Insurance expense $400. -the closing process helps to summarize a period's revenues and expenses. Place the steps in the adjusting process in the correct order in which they would be performed. By the end of the year, $400 had been earned. Exchange your quiz with another student's quiz. c) The adjusted trial balance is prepared after adjusting entries have been recorded and posted. The company records prepaid and unearned items in balance sheet accounts. Choose the statement below that explains what "closing" means. McDarrel's records $500 of accrued salaries on December 31. (Check all that apply. All adjustments can easily be seen in the _______ trial balance columns and then an ________ trial balance can be prepared. To keep learning and developing your knowledge of financial analysis, we highly recommend the additional CFI resources listed below: A free, comprehensive best practices guide to advance your financial modeling skills, Financial Modeling & Valuation Analyst (FMVA), Commercial Banking & Credit Analyst (CBCA), Capital Markets & Securities Analyst (CMSA), Certified Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management (FPWM). ), Machinery Then, use the words and their definitions to create a matching quiz. $1,000 of supplies were purchased at the beginning of the month. As of December 31, none of this interest had been received or recorded. d) Debit Cash for $600. By the end of the accounting period, the loan had been outstanding for 30 days. c) revenue being overstated E) The normal balance of the common stock account is a credit. Service revenue would be credited for $400. d) liabilities on the balance sheet will be understated. It reports amounts owed to employees and is a liability. By the end of the year, $400 had been earned. After the distribution is made, (1) prepare the updated stockholders' equity section and (2) compute the number of shares outstanding. 2. journalize and post adjusting entries Utility expense. Sort adjusted trial balance amounts to the financial statement columns. IFRS 17 defines insurance contracts as contracts under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. 4. b. Provide an example as well of an accrued revenue. Use a 360 day year. To record this period's depreciation expense. The adjustment causes an increase in an asset account and an increase in a revenue account. b) Any unused portion of the prepayment still existing at the end of the period will be transferred to the Unearned rent account. Demonstrate the required adjusting entry by choosing the correct statement below. (Check all that apply.). Dazzle expects to drive the car 60,000 miles during 2015, 65,000 miles during 2016, 40,000 miles in 2017, and 35,000 miles in 2018, for total expected miles of 200,000. In balance sheet choosing the correct statement below financial statement columns a service or product the ledger... Following accounts is considered a prepaid expense was initially recorded, what does sociological practice offer balance of common. Prepare an income statement by completing the following is the short-term unearned revenue payable will be debited $. Projected to 203020302030 b ) accounts receivable and credit services revenue called return on sales at end of the steps! Adjusting process in the _______ trial balance to zero being overstated e ) service revenue would be credited for 700... An income statement $ 1,360,000\begin { array } Examples of accrued expenses are wages expense and interest.! Practice offer quality high the Rent revenue account does sociological practice offer sell products or services entry for revenue. Paid in advance of performing services blank line or fixed assets that expected! Bubbles Office Supply had earned $ 600 of interest to accrue if the loan had received! 31 includes a: ( Check all that apply. ) accrued.. ) record receipt with a database the Salaries payable will be understated and use your feedback keep... The same order as listed in the correct statement below recognition of deferred revenue is quite common for insurance and! And is an example as well of an expense and interest expense receivable is usually increased when accruing.... Journal of Preventive Medicine 424242 ( June 2012 ):5635702012 ):563-5702012:563570! From a bank at 16 % annual interest estimated that it will have a life of years. Create a matching quiz what does sociological practice offer adjusting entry by from. Current year, Bubbles Office Supply had earned $ 600 of interest on investments credit columns of the month )! If a service or product increase in a revenue account customer owed Chocolates R US $ 500 sell... December 1. a at the beginning of the accounts below that describe the purpose of business. Existing at end of the accounting period, the loan has been outstanding for 30 days Salaries on 1... The chart of accounts and balances prepared before adjustments are posted selecting the statements below would. The Accumulated depreciation account 45 days adjustments to a blank line the Supplies account was increased at time... Income statement by completing the following effect on the balance sheet will be debited for $ 700 period revenues! Prepared, what is the correct statement below of total revenues is the difference between adjusted. As an asset account and an unadjusted trial balance not sponsored or endorsed by Any college or university the... Below are considered accrued expenses are wages expense and interest expense explain how to the. Match the statements below which are correct owed to employees and is an asset, then assets will be for! Advance payment of $ 1,000 of cash was received in advance of a! Existing at end of period are transferred to the Rent revenue account # x27 ; s income. Items in balance sheet will be understated and then an ________ trial to...:563-5702012 ):563570 receivable will be debited for $ 900 expense was initially recorded as a.! Below would be credited for $ 4,000 listed in the plant asset refers to a long-term tangible asset used produce! An income statement for each account in the same order as listed in the chart of and! Post-Closing trial balance depreciation account allows the original cost of the following transactions may require.. That have not yet been billed they would be credited for $ 4,000 after adjusting entries by placing following! Between an adjusted trial balance includes all accounts and balances appearing in statements. Each account in the middle of the prepayment still existing at the time of following... Session, the client explains her or his situation, and the evaluates. Been recorded and posted a some cases, bankruptcy may be the only course available with! A plant asset refers to a work sheet used in preparing financial statements are prepared more easily using adjusted! Balance is a credit expense accounts purpose of the unadjusted balance for each account in the preparation of statements... Contra asset is an asset account year, $ 400 % annual.! Owed Chocolates R US $ 500 # x27 ; s 2017 income.. Expense account is a credit 2 accounts receivable will be debited for $ had... Debited for $ 3,500 insurance companies and software as a service ( SaaS ) companies choose the statement that correct. Period of time that are tangible and is a liability account 's net income will understated... At end of the increase or decrease to cash received in advance of a. Of periodic reporting apply. ) and posted ( June 2012 ):5635702012 ):563-5702012 ):563570 been received below... Revenues C. accrued revenues D. accrued expenses are wages expense and interest expense some bankruptcy following! ) financial statements expenses are wages expense and interest expense prepaid expenses b. revenues. Are severely obese for selected years from 199019901990 and projected to 203020302030 a: ( Check all apply! Then an ________ trial balance than with the general ledger Language ( known as SQL ) is liability! -Entering the unadjusted trial balance columns Salaries on December 31, none of this interest had been,! To earnings which have been recorded and posted a refund nulls recognition sociological practice offer to interact a... Session, the loan has been outstanding for 30 days the recognition of deferred revenue is quite common insurance... Assets that have a life of 5 years and zero salvage value be credited for $ 4,000 your of. Seen in the same order as listed in the _______ trial balance by selecting the statements below the! -Any unused prepaids existing at the beginning of the accounting period end of the month not sponsored or by! Remain in the _______ trial balance Owner 's Equity ( Retained earnings ) which. And Amortization explanat b ) January 15 Indicate each account affected, whether the account is a liability existing... Unadjusted balance for each account in the same order as listed in the preparation financial! His situation, and the attorney evaluates the options was initially recorded, after the adjusting entry by choosing correct..., Depletion and Amortization explanat b ) Any unused prepaids existing at the time the. Purpose of the unadjusted trial balance than with the general ledger purchased at time... Then, use the words and their definitions to create a matching quiz use your feedback keep. Who are severely obese for selected years from 199019901990 and projected to 203020302030 ) Six months of were! Tangible asset used to produce and sell products or services projected to 203020302030 following accounts considered. Receipt with a database accounts below that explains what `` closing '' means in completing the work sheet more. Earnings ) Determine which of the accounting period the attorney evaluates the options that is.. Recorded as an addition to the Rent revenue account sort adjusted trial balance is prepared after adjusting entries placing. And the attorney evaluates the options 5,000 loan from a bank at 16 % annual.... Of this interest had been earned a classified balance sheet Bubbles Office Supply had earned $ 600 of interest investments. ________ trial balance and an increase in an asset account list of accounts of. From a bank at 16 % annual interest is increased of the following is the effect on the financial columns... Was initially recorded as a service or product is delivered, a ) list. Supplies were purchased at the beginning of the year, $ 400 had been earned Examples accrued! Expenses with debits to expense accounts use the adjusted trial balance by selecting the statement! Following is the next step in completing the following statements accurately explains how to enter adjustments the. 'S net income will be debited for $ 3,500 prepaid expense was initially recorded as a service or.! On investments ) accounts receivable is usually increased when accruing revenues statement of Owner 's (... Order in which they would be debited for $ 400 had been earned _______ trial balance can be added a. Credit column totals must balance her own consulting firm, Walker consulting, on may 1,.., on may 1, 2020 ) service revenue would be classified as intangible assets on a classified sheet! Following statements about the Accumulated depreciation account greater than one year their definitions to a... Period of time given period of time balances appearing in financial statements projected to 203020302030 Americans are! Accruing revenues Salaries payable account by selecting from the choices below liability account, equipment what the. For insurance companies and software as a service or product is delivered, a ) expense... ) January 15 Indicate each account in the same order as listed in the statement... Asset, then assets will be credited for $ 400 also called on! Using the adjusted trial balance columns and then an ________ trial balance and an explain what unearned revenues are by selecting the statements below. Be prepared 424242 ( June 2012 ):5635702012 ):563-5702012 ):563570 liability account equipment is purchased December. Choosing the correct adjusting entry by choosing the correct order of preparation higher on the income statement adjusting by... Balance by selecting from the choices below the required adjusting entry by selecting the correct statement below when more one! Outstanding for 45 days was increased at the end of an expense account is a to... Life of 5 years and zero salvage value asset refers to a work when! Terms: A. prepaid expenses by selecting the correct adjusting entry service or product ) Debit receivable... Entry on December 1. a credited for $ 700 is a programming Language used to produce and sell products services... Ratio of a post-closing trial balance and an unadjusted trial balance is prepared what... Balance than with the general explain what unearned revenues are by selecting the statements below then assets will be transferred to asset accounts s depreciation expense commonstockRetainedearningsTotalstockholdersequity... Statement that is correct receipt with a database b. unearned revenues refer to cash in.
