Recording and analyzing adjusting entries Adjusting entries affect at least one balance sheet account and at least one income statement account.

For the following entries, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account.

a. Entry to record wage expenses incurred but not yet paid (nor recorded).

b. Entry to record expiration of prepaid insurance.

c. Entry to record annual depreciation expense.