Question

an accountant made the following adjustments at december 31, the end of the accounting period: view the adjustments. read the requirements. requirement 1. journalize the adjusting entries. (record debits first, then credits. exclude explanations from any journal entries) a. prepaid insurance, beginning, $500. payments for insurance during the period, $2,000. prepaid insurance, ending, $400. accounts debit credit a. insurance expense 2,100 prepaid insurance 2,100 b. interest revenue accrued, $2,500. accounts debit credit b. interest receivable 2,500 interest revenue 2,500 c. unearned service revenue, beginning, $1,700. unearned service revenue, ending, $300. accounts debit credit c.

Explanation:

Step1: Calculate insurance expense

Insurance expense = Beginning prepaid insurance + Payments - Ending prepaid insurance = $500 + 2000 - 400=2100$. Debit Insurance Expense and credit Prepaid Insurance.

Step2: Record accrued interest revenue

Debit Interest Receivable and credit Interest Revenue for the accrued amount of $2500$.

Step3: Calculate earned service revenue

Earned service revenue = Beginning unearned service revenue - Ending unearned service revenue = $1700 - 300 = 1400$. Debit Unearned Service Revenue and credit Service Revenue.

Answer:

Accounts	Debit	Credit
Prepaid Insurance		2100
b. Interest Receivable	2500
Interest Revenue		2500
c. Unearned Service Revenue	1400
Service Revenue		1400