ADJUSTING JOURNAL ENTRIES

Question 1

Matching Revenues and Related Expenses

Answer 1

1. Unearned revenues - (deferred) / prepaid expenses - (deferred)
2. Accrued revenues / expenses (receivables)

Question 2

Adjusting Journal Entries - Deferred/Prepaid

Answer 2

Deferred Revenues

Dr Cash
Cr Unearned revenue

Dr Unearned revenue
Cr Revenue

Prepaid Expenses

Dr Prepaid expenses
Cr. Cash

Dr Expenses
Cr Prepaid expenses

Question 3

Adjusting Journal Entries - Accrued Revenues and Expenses

Answer 3

Dr Accounts Receivable
Cr Revenue

Dr. Expenses
Cr. Accrued Liability