For journal entries 1 through 6, identify the explanation that most closely describes it. A. To record
Question:
For journal entries 1 through 6, identify the explanation that most closely describes it.
A. To record this period’s depreciation expense.
B. To record accrued salaries expense.
C. To record this period’s use of a prepaid
D. To record accrued interest revenue.
E. To record accrued interest expense.
F. To record the earning of previously unearned expense. income.
Interest Expense. Interest Payable. Insurance Expense Prepaid Insurance 1. 2,208 Interest Receivable 3,300 2,208 Interest Revenue 3,300 3,180 Depreciation Expense Accumulated Depreciation 2. 5. 38,217 3,180 38,217 3. Unearned Revenue 19,250 6. Salaries Expense 13,280 Services Revenue. 19,250 Salaries Payable 13,280
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Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
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