Chapter 3, Problem 1PSA

Problem 3-1A
Identifying adjusting entries with explanations

C3 P 1

For each of the following journal entries 1 through 12, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)

1. To record receipt of unread revenue.
2. To record period’s earning of prior unread revenue.
3. To record payment of an accrued expense.
4. To record receipt of an accrued revenue.
5. To record an accrued expense.
6. To record an accrued revenue.
7. To record this period’s use of a prepaid expense.
8. To record payment of prepaid expense.