a. Explanation Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. Adjusting entries : Adjusting entries are the journal entries which are recorded at the end of the accounting period to correct or adjust the revenue and expense accounts, to concede with the accrual principle of accounting... b. To determine To Prepare: Adjusting entry for unearned revenue.

Financial Accounting (12th Edition) (What's New in Accounting)

12th Edition

ISBN: 9780134725987

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

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Chapter 3, Problem 3.13S

To determine

To Prepare: Adjusting entry for Accrued revenue.

To determine

To Prepare: Adjusting entry for unearned revenue.

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Chapter 3, Problem 3.12S

Chapter 3, Problem 3.14S

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Adjusting entry for Accrued revenue.

Solution Summary: The author explains the rules for debiting and crediting different accounts while they occur in business transactions: debit, increase in assets, expenses, dividends, decrease in liabilities, revenues, and stockholders’ equities.