Adjusting Entries: Fill In the Blanks
Unearned income is shown in the balance sheet as a
The expired cost of any fixed asset means
Interest received in advance is a liability that is known as
Income received in advance is known as
Prepaid rent is categorized as a
are expenses that have been incurred but will not be paid until the end of the accounting period.
Revenue earned but not received until the end of the accounting period is known as
Expenses paid in advance are known as
Suppose that salaries amounting to $600 are outstanding until the end of the accounting period. The salaries expense account will be debited and the
account will be credited when making an adjusting entry for this transaction.
A trial balance prepared after considering the effect of adjusting entries is known as an
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.