Reference no: EM131528371
Question: For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)
A. To record payment of a prepaid expense.
B. To record this period's use of a prepaid expense.
C. To record this period's depreciation expense.
D. To record receipt of unearned revenue.
E. To record this period's earning of prior unearned revenue.
F. To record an accrued expense.
G. To record payment of an accrued expense.
H. To record an accrued revenue.
I. To record receipt of accrued revenue
1. Unearned Professional Fees . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Professional Fees Earned . . . . . . . . . . . . . . . . . . . . . . 6,000
2. Interest Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500
Interest Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500
3. Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
4. Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . 8,000
5. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Unearned Professional Fees . . . . . . . . . . . . . . . . . . . . 9,000
6. Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
7. Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Interest Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
8. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
Accounts Receivable (from services) . . . . . . . . . . . . . 1,500
9. Salaries Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000
Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000
10. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
Interest Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
11. Prepaid Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
12. Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500
Prepaid Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500