The trial balance of Bair Company includes the following balance sheet accounts. Identify the accounts that may

Question:

The trial balance of Bair Company includes the following accounts. Identify the accounts that may require adjustment. For each account that requires adjustment, indicate
(a) The type of adjusting entry (prepaid expenses, unearned revenues, accrued revenues, and accrued expenses) and
(b) The related account in the adjusting entry.
Accounts Receivable Interest Payable
Prepaid Insurance Unearned Service Revenue
Accumulated Depreciation—Equipment

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...