PRACTICE EXERCISES PE 3-1 Indicate with a Yes or No whether each of the following accounts normally requires Accounts requiring an adjusting entry adjustment a. Building b. Cash c. Interest Payable EE 3-1 p. 110 d. Miscellaneous Expense e. Nath Luken, Capital f. Prepaid Insurance Nam Luken, Capital f. Prepaid Insurance PE 3-2 Type of adjustment Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, (4) accrued expense, or (5) depreciable capital asset. a Cash received for use of land next month b. Fees earned but not received c. Office furniture d. Rent expense owed but not yet paid e Supplies on hand EE 3-2 p. 110