Book 2 - Chapter 8

LG 8-1, continued

Item	Accrued . . .		Not an accrual
Item	Revenue	Expense	Not an accrual
m. Rent Expense 8,000 Rent Payable 8,000
n. Rent Expense 8,000 Rent Payable 8,000	We are reducing the Prepaid Rent, so the item was already prepaid.
o. The trial balance shows a balance of $2,500 in the Prepaid Rent account.
p. The trial balance shows a balance of $4,000 in the Unearned Service Revenue account.

LG 8-2.

Date	Account Titles and Explanation	Post. Ref.	Debit	Credit

Sept. 30	Wages Expense		5,000
	Wages Payable			5,000
	To accrue wages

30	Accounts Receivable		4,400
	Fees Earned			4,400
	To accrue fees earned

30	Interest Expense		2,500
	Interest Payable			2,500
	To accrue interest expense

30	Accounts Receivable		800
	Service Revenue			800
	To accrue service revenue

30	Accounts Receivable		2,000
	Consulting Revenue			2,000
	To accrue unbilled consulting revenue: 3,000 × 2/3 = 2,000

Learning Goal 8, continued

SOLUTIONS

Section I · Adjusting the Accounts

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