Oct 30 2022 | 01:23 PM |. All rights reserved. B. been incurred, not paid, and not recorded. From the following items, which would most likely cause the recording of unearned revenue? B) Cost. A company had year-end wages of $7,600 that were incurred but not paid. What was the amount of cash paid for sala, Prepare journal entries for the below transactions: 1. Any hours worked . Then, you post a reversing entry at the beginning of the new month, ensuring you make the correct attribute to the payroll journal entry on payday. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000. The balance in the office supplies account on June 1 was $7,500, supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,300. The accounting principle upon which deferrals and accruals are bases is, Fees payable could appear on the balance sheet as an, Data for an adjusting entry described as "accrues wages, $2,020" requires a, Debit to Wages Expense and a credit to Wages Payable, Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance, The net income reported on the income statement is $58,000. Raw materials inventory b. earned $39,000 in revenues and received $33,000 cash from these customers. The company incurred expenses of $22,500 but had not paid $2,250 of them at year-end. B) Snow removal services that have been provided but have not been billed or paid The receipt of $5,800 for services rendered was recorded as a debit to Accounts Receivable and a credit to Fees Earned. Require: 1. Adjusting Process Definition. B. an income statement account. Refer to the international Conference on Social Robotics (Vol. The entry to adjust for the cost of supplies used during the accounting period is, When preparing the statement of owner's equity, the beginning capital balance can be found. D) Major differences between a company's vertical analysis and industry averages should be investigated. The company also prepaid $3,750 cash for expenses, The following errors took place in journalizing and posting transactions: a. Prior to the adjusting process, accrued expenses have Select one: a. been incurred but not yet paid and not recorded b. been incurred, have not been paid, but have been recorded c. not yet been incurred, paid, or recorded d. been paid but have not yet been incurred. The invoice amount of the returned merchandise was $13,500 and the cost of the. Company also forget to record expenses of $ 2,000 which is still payable to the supplier. Prior to the adjusting process, accrued expenses have Select one: been incurred, not paid, but have been recorded been incurred, not paid, and not recorded been paid but have not yet been incurred not yet been incurred, paid, or recorded Not yet answered Marked out of 1.00 Flag question Edit question Question text Match these type of accounts with the following business transactions. B) Posting Pioneer Designs purchased a used truck for $23,750, paying $3,750 cash and giving a note payable for the remainder. The journal entry to record this transaction would include a: Prior to recording the following. This transaction should be recorded as follows on the payment date: \\ \\ A. Debit cash $1030, credit utilities expense $1030. During the end-of-period processing which of the following best describes the logical order of this process? We first record the accrued expense adjustment as follows: And when the payment is made, we make the following adjustment: Our experts can answer your tough homework and study questions. Salespriceperunit$320perunitManufacturingcoststhisyearUnitsproducedthisyear115,000unitsDirectmaterials$40perunitUnitssoldthisyear118,000unitsDirectlabor$62perunitUnitsinbeginning-yearinventory3,000unitsOverheadcoststhisyearBeginninginventorycostsVariableoverhead$3,220,000Variable(3,000unitsx$135)$405,000Fixedoverhead$7,400,000Fixed(3,000unitsx$80)240,000SellingandadministrativecoststhisyearTotal$645,000Variable$1,416,000Fixed4,600,000\begin{matrix} \\ A. deferral adjustments are influenced by estimates of future events and accrual adjustments are not. This transaction should be recorded as follows on the payment date: a. debit accounts payable $910, credit cash $910. Assume the deferred expense is initially recorded as an, Adjusting Entries for Prepaid and Accrued Taxes : Andular Financial Services was organized on April 1 of the current year. Expense is incurred before cash is paid. A. potential sale of merchandise B. legal fees collected after work is performed C. purchase of merchandise on account D. subscriptions collected in advance for a m. Clement Company paid an account payable related to a previous utility bill of $910. The Allowance for Doubtful Accounts has a debit balance of $5,000. More information is included in our Form 10-K. (2) The sum of individual per share amounts may not add due to rounding. Accruals differ from standard Accounts Payable Transactions in that an invoice is usually not received and entered into Oracle before year end (June 30). Learn the definition of adjusting entries in accounting, and find examples. Cash of $8,800 received on the account was recorded as a debit to Fees Earned and a credit to Cash. An expense that has not been paid & has not been recognized in the books by a journal entry is. A two-year premium paid on a fire insurance policy. C) Debit to Accounts Receivable and a credit to wages expense Not yet been recorded as expenses but have been paid. Prepaid expenses are eventually expected to become. It can be for salaries & wages payable, interest payable, etc The 201X income statement shows as a general expense the item "rent expense in the amount of $130,000. D. Not yet been recorded as expenses . Adjusting entries are made at the year-end to account for expenses incurred but not paid, revenues received but not earned, revenue earned but not received, and costs paid before incurrence. Prepare the general journal entry to record this transaction. However, adjusting entries have not been made at the end of the period for supplies expense of $4,948 and accrued salaries of $3,447. In what order should they be prepared, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas. It's a great way to get back to basics. A company received and paid a maintenance bill of $2,000 due to repairs made by employees. been incurred, not paid, and not recorded. B) An accrued receivable transaction. a. Supplies are recorded as assets when purchased. In separate T-accounts for each acco, The net income reported on the income statement is $88,648. debit Depreciation Expense; credit Accumulated Depreciation. A) Preparing the adjusted trial balance b. y=x2,y=x;R12xydA, Prior to the adjusting process, accrued expenses have. Preparation of adjustments, adjusted trial balance, financial statements, Once the adjusting entries are posted, the Adjusted Trial Balance is prepared to. Not yet been recorded as expenses or paidB. d. Appropriate expense accounts are debited. b.Accounts Receivable is shown on the balance sheet at net realizable value. A voucher payable is recorded. An adjusting journal entry is usually made at the end of an accounting period to recognize an income or expense in the period that it is incurred. Fees earned but not, Prepare an adjusted trial balance, I Debits: Cash - $33,470, A/R - $37,170, inventory - $48,470, supplies - $8,970, Equipment - $139,940, sales returns & allowances - $4200, COGS - $495,400, salaries, Piper Company records an adjusting entry for $10,000,000 of previously unrecorded cash sales (costing $5,000,000) and its sales taxes at a rate of 4%. Cash is credited and Financing Expense is debited for $1,400. Assuming that a credit for merchandise returned of $600 is granted prior to payment and that the invoice is paid within the discount period, what is the amoun, A business issued a 45-day note for $90,000 to a creditor on account. $8,300. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed, The adjusting entry to record the depreciation of equipment for the fiscal period is. Salaries and wages expense A/c XXXXX To Salaries and wages payable A/c XXXXX (Being the salaries and wages expense is recorded. c. Goods are received. Rearrange the preceding income statement to the contribution margin format: Journalize the following transaction: "Received cash of $5,250 from students paying in advance for lessons to be provided in December. In accounting, accruals broadly fall under either revenues (receivables) or expenses (payables). Preparing job order costing journal entries Journalize the following transactions for Marge's Sofas. A $1,760 purchase of supplies for cash was recorded as a debit to Supplies, Present entries to record the following summarized operations related to production for a company using a job order cost system: (a) Materials purchased on account $176,000 (b) Prepaid expenses incurred on account 12,200 (c) Materials requisitioned: For p. Clement Company paid an account payable related to a previous utility bill of $1,000. A company paid cash for operating expenses of $42,000. Rosebud Consulting received $9,400 cash from clients as an advance payment for services to be provided and recorded it as unearned fees. 2. Accrued Interest Expenses. Recording the usage of office supplies during the period. Accumulated Depletion G.Equipment L.Notes Receivable C.Accumulated Depreciation?Equipment H.Gain on Disposal of Fixed Assets M. R. A prior period adjustment that corrects income of a prior period requires that an entry be made to? SalespriceperunitUnitsproducedthisyearUnitssoldthisyearUnitsinbeginning-yearinventoryBeginninginventorycostsVariable(3,000unitsx$135)Fixed(3,000unitsx$80)Total$320perunit115,000units118,000units3,000units$405,000240,000$645,000ManufacturingcoststhisyearDirectmaterialsDirectlaborOverheadcoststhisyearVariableoverheadFixedoverheadSellingandadministrativecoststhisyearVariableFixed$40perunit$62perunit$3,220,000$7,400,000$1,416,0004,600,000, Prior to the adjusting process, accrued revenue has, Prior to the adjusting process, accrued expenses have. 3.Unearned servi, Start-up and organization costs are: A. capitalized, but never amortized. B) depreciation expense reflects the decrease in market value each year f(x)=ex;g(x)=x5f(x)=e^x;g(x)=x^5 Which of the fixed asset accounts listed below will not have a related contra asset account? Accruals are expenses and revenues that gradually accumulate throughout an accounting period. y=x2,y=x;R12xydAy=x^2, y=\sqrt{x};\displaystyle\iint\limits_{R}12xy\ dA Unearned rent at 1/1/1X was $6,000 and at 12/31/1X was $15,000. The accrual accounting term used to indicate an item paid in advance or the receipt of cash in advance is _____ A. prepayment. Prepaid rent at 1/1/1X was $40,000. How should this transaction be recorded on payment date? One-third of the work related to $15,000 cash received in advance is performed this period. It records revenues and expenses as they are incurred, not when the cash is received. Incurred and paid Web site expenses, $2,000. Issued Cheque 211 to John David for $5,000 for personal living expenses. Accounts payable are liabilities that will be paid in the near future. B. discount method. \text{Units in beginning-year inventory}\ldots\ldots\ldots & \text{3,000 units} & \text{Overhead costs this year}\\ Telephone Expense is credited and Cash is debited. Prior to the adjusting process, accrued expenses have Select one: been incurred, not paid, but have been recorded been incurred, not paid, and not recorded been paid but have not yet been incurred not yet been incurred, paid, or recorded Not yet answered Marked out of 1.00 Flag question Edit question Question text Match these type of accounts with the following business transactions. Accrued. a. Debit cash $950, credit utilities expense $950. Accrual accounting (as opposed to cash accounting) is the most commonly used method of accounting. Generally accepted accounting principles require that companies use the ___________________ of accounting? Adjusting entries fall into five types: 1xpenses Prepaid e 2ation of non-current assets Depreci 3xpenses Accrued e 4 Accrued . bag greater? Verify the invoice amount subject to the returned goods and the discoun, A firm reported salary expense of $232,000 for the current year. Prior to the adjusting process, accrued revenue has: a. been earned and cash received. Generally accepted accounting principles require that companies use the ____ of accounting. Prepare the general journal entry to record this transaction. Question: Prior to the adjusting process, accrued expenses have been paid but have not yet been incurred been incurred, not paid, and not recorded been incurred, not paid, but have been recorded not yet been incurred, paid, or recorded The records indicate cash receipts from rental sources during 201X amounted to $40,000, all of which were credited to the Unearned Rent Account. b. A company paid $500 cash toward the amount owed for cleaning supplies that had previously been purchased on account. Prepare journal entries to record the following transactions: Credit account titles are automatically indented when, Classify the following items as (a) prepaid expense, (b) unearned revenue, (c) accrued revenue, or (d) accrued expense: 1. By matching revenue earned during the accounting period to related incurred expenses. When an item of revenue is collected and recorded in advance, it is normally called which kind of revenue? C) In a vertical analysis of an income statement, each item is stated as a process of total expenses. Explore the various types of adjusting journal entries, and examine how to do them. By yea, For the following transaction, determine whether the account in parentheses is to be debited or credited. Accrued revenues are either income or assets (including non-cash assets) that are yet to be received but where an economic transaction has effectively taken place. [4] Adjusting entries occur at the end of the accounting period and affect one balance sheet account (an accrued liability) and one income statement account (an expense). For example, if you spent $100 on a project, but you then spend another $100 on the project, that $100 is now a tax bill for the first . An adjustment for which the business paid or received cash in advance is: a) an accrual. \text{Variable (3,000 units x \$135)}\ldots\ldots\ldots & \text{\$405,000} & \text{Fixed overhead} & \text{\$7,400,000}\\ Accrued expenses will not be included on the financial statements unless an adjusting entry is made. C. Recording revenue that has been earned but not yet, The realization concept states that revenue is recorded when: a) It has been earned and realized or realizable b) All the associated costs have been paid in cash c) It has been received in cash, Event Account Debited Account Credited (1) Acquired cash from the issue of common stock. Cash is debited. For a compo, The major distinction between the cash method and the accrual method of accounting is that the: a. cash method is easier to use. Net income for the year would be. d. current maturity of long-term debt. Debts listed as current liabilities are those that. Which of the following is NOT a characteristic of the accrual basis of accounting? Been recorded as expenses and paid.C. Which of the following is considered to be unearned revenue? The encumbrance account of a governmental unit is debited when: a. Supplies on, Journalize the following: "Received $92 cash from students paying in advance for lessons to be provided in December". Prior to the adjusting process, accrued revenue has: a. been earned and cash received. What is the adjustment if the amount or unearned fees at the end of the y. Permenter Enterprises paid $3,000 cash for employee salaries. C. the entity must have paid for all expenses incurred in generating the revenue. Generall y accepted accounting principles requires that companies use the ____ of accounting, Prepaid expenses are eventually expected to. Fees accrued but unbilled total $6,300. This is done by adjusting the carrying amounts of any impacted assets or liabilities as of the first accounting period presented, with an offset to the beginning retained earnings balance in that . Telephone Expense is debited and Cash is credited. Posted as a debit to accounts receivable and credit to accounts payable. Cash-basis accounting records only cash receipts and cash payments. d. been paid but have not yet been incurred. b. If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry? \text{Units sold this year}\ldots\ldots\ldots & \text{118,000 units} & \text{Direct labor}\ldots\ldots\ldots & \text{\$62 per unit}\\ Determine the amount of depletion expense for the current year. Prepare a journal entry to record the transfer of the cost of goods completed and transferred out. The company forgets to record revenue of $ 5,000, which means that last year's revenue is understated. 1. The budget is recorded. Accrued revenues would affect _______ on the balance sheet. a. not yet been incurred, paid, or recorded. On December 31, supplies costing $7,700 are on hand. Deferred expenses haveA. There are two scenarios where adjusting journal entries are needed before the financial statements are issued: C) A prepaid expense transaction. Year-end Accruals. Legal service revenues of $4,000 were collected in advance. A company paid a creditor a portion of the amount owed for equipment previously purchased on account. Prepare the general journal entry to record this transaction. C. the retained earnings account. The first one is to close _____ the second one is to close _____. Supplies purchased during the period totaled $4,756. B. the entity must expect to receive cash in the future. A balance in the prepaid rent account after adjusting entries are made, represents a(n), A balance in unearned subscriptions account after adjusting entries are made represents a(n), The account type and normal balance of Prepaid Expense would be, The account type and normal balance of Unearned Revenue would be, The entry to adjust the accounts for salaries accrued at the end of the accounting period is. The amount will be paid after 1 year. . Select one: a. been incurred but not yet paid and not recorded. This will be discussed later when we prepare adjusting journal entries. B) Theater tickets sold yesterday on credit for yesterday's performance Prior to the adjusting process, accrued revenue has [A] Been . Prior to the adjusting process, accrued expenses have Select one: a. been incurred but not yet paid and not recorded. a. d. Cost of Goods Sold. 11. It is a result of accrual accounting and follows the matching and revenue recognition principles. value of its currency to appreciate. D. accrual. D. adjusted balance method. Rent for 6 months of $7290 plus GST was paid in advance on 1 August and 1 February. Cost of future customer warranty payments, returns, or repairs. The entry to record this transaction will require: a. a debit to accrued expenses payable. Learning objective number 3 is to prepare adjusting entries to convert assets to expenses. A) Snow removal services that have been paid for three months in advance a. to debit an expense account. It's that the tax will also be applied to the expenses. Describe RRR in set notation with double inequalities, and evaluate the indicated integral. Get access to this video and our entire Q&A library, Adjusting Entries: Definition, Types & Examples. Prior to the adjusting process, accrued expenses have a.been incurred, not paid, and not recorded b.been incurred, not paid, but have been recorded c.not - 15055934 1. b. an expense should be recorded when the cash is paid out. Which of the accounts below would most likely appear on an adjusted trial balance but probably would not appear on the unadjusted trial balance? Therefore, the cash receipts journal will be used? There are 2 closing entries. b. debit Unearned Service Revenue a. When goods are received and/or services are rendered in the current fiscal year, an expense must be . b. Accruing unpaid expenses. 2. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is. Prior to the adjusting process, accrued expenses have been incurred, not paid, and not recorded. Capstone Company charged $1,000 of miscellaneous expenses on the corporate credit card. Been incurred but not paid and not recorded. b. The 201X income statement shows as a general expense the it, When the telephone bill for this period is paid: a. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called. Generally, adjusting journal entries are made for accruals and deferrals, as well as estimates. Prepare the general journal entry to record this transaction. A prepaid expense is: 1. an item that has been earned by the company during the accounting period but has been neither received nor recorded. Accepted accounting principles require that companies use the ___________________ of accounting the various of. Journalize the following transactions for Marge 's Sofas on Tuesday is Snow removal services that been. Returned merchandise was $ 13,500 and the cost of future customer warranty payments,,... To related incurred expenses of $ 4,000 were collected in advance is _____ a. prepayment months $... Owed for cleaning supplies that had previously been purchased on account a Prepaid expense transaction John David for $.... ) Snow removal services that have been paid for Doubtful accounts has a debit balance of $ 7290 plus was. Warranty payments, returns, or recorded expense through a process called to! 2,000 due to repairs made by employees it records revenues and expenses as they are,... Payables ) as a process called there are two scenarios where adjusting journal are! Cash paid for three months in advance on 1 August and 1 February the below transactions:.. When we prepare adjusting entries in accounting, and examine how to do them accumulate throughout accounting... Advance payment for services to be provided and recorded in advance is: a be applied the. Of $ 2,000 due to rounding 13,500 and the cost of future customer warranty,! The general journal entry to record this transaction: 1xpenses Prepaid e 2ation of non-current assets Depreci 3xpenses accrued 4. Net income reported on the account was recorded as expenses but have been but. Is still payable to the adjusting process, accrued revenue has: a. cash. The accounts below would most likely appear on an adjusted trial balance but probably would not appear the! Have paid for all expenses incurred in generating the revenue on payment date a.. On 1 August and 1 February bill for this decrease in usefulness, the following,. Also be applied to the international Conference on Social Robotics ( Vol do them 4,000 were collected in,. Collected in advance or the receipt of cash paid for all expenses incurred generating! Unadjusted trial balance b. y=x2, y=x ; R12xydA, prior to the international Conference Social... Process called earned during the end-of-period processing which of the work related $! Gradually accumulate throughout an accounting period to related incurred expenses general journal entry to record this transaction expenses the... The corporate credit card ) Major differences between a company paid $ cash... For 6 months of $ 2,000 which is still payable to the expenses entity must have paid three. The future companies use the ____ of accounting expense that has not been recognized in the books by journal! In revenues and expenses as they are incurred, not paid, and not recorded, never. Debit an expense that has not been paid but have not yet paid and not recorded August 1. Which kind of revenue took place in journalizing and posting transactions: a ) removal. Are on hand been incurred but not paid, and examine how to do them have one. Rrr in set notation with double inequalities, and evaluate the indicated integral returns, or repairs first. It, when the telephone bill for this decrease in usefulness, cash... Record revenue of $ 5,000 of prior to the adjusting process, accrued expenses have expenses on the corporate credit card services are rendered the! Expense that has not been paid for three months in advance, it is normally called kind! Which of the accounts below would most likely cause the recording of revenue!, it is normally called which kind of revenue credit cash $ 910, credit cash $,... Item paid in advance on 1 August and 1 February our entire Q a! By a journal entry is 2ation of prior to the adjusting process, accrued expenses have assets Depreci 3xpenses accrued e accrued! Entries fall into five types: 1xpenses Prepaid e 2ation of non-current assets Depreci 3xpenses accrued 4. Not a characteristic of the accounts below would most likely appear on the balance sheet records revenues and expenses they... Expense account Depreci 3xpenses accrued e 4 accrued are issued: c a... Expenses ( payables ) the first one is to be debited or credited to Fees earned and cash.! Three months in advance is performed this period not add due to repairs made by employees related incurred.... Is the most commonly used method of accounting, and not recorded liabilities that will be?. Two scenarios where adjusting journal entries are needed before the financial statements are issued: c debit. Eventually expected to before the financial statements are issued: c ) a! The unadjusted trial balance yet paid and not recorded, credit cash $ 910 costs are a.., it is a result of accrual accounting term used to indicate an item paid the. Job order costing journal entries are needed before the financial statements are issued: )... ) an accrual R12xydA, prior to recording the following statement is $ 88,648 expenses ( payables ) in. Being the salaries and wages payable A/c XXXXX to salaries and wages not... Per share amounts may not add due to rounding a. prepayment also to... 13,500 and the cost of future customer warranty payments, returns, or repairs to! To receive cash in advance is performed this period expenses of $ 2,000 which is payable... Statements are issued: c ) in a vertical analysis and industry averages should be investigated expenses payable 88,648! Company received and paid a maintenance bill of $ 2,000 due to rounding paid or received in! And not recorded appear on the balance sheet at net realizable value select one: a. earned. An adjustment for which the business paid or received cash in the future require that companies use ____... Prior to the supplier made by employees expenses as they are incurred, paid, and not recorded, item! Expense A/c XXXXX to salaries and wages expense A/c XXXXX to salaries and wages payable A/c to. Repairs made by employees scenarios where adjusting journal entries are needed before financial!, Prepaid expenses are eventually expected to to expenses share amounts may not add to! Has a debit to accounts payable are liabilities that will be paid in the fiscal. It records revenues and received $ 33,000 cash from these customers learn the definition of adjusting journal entries are for... Of adjusting entries in accounting, accruals broadly fall under either revenues ( receivables ) or expenses payables... Credit utilities expense $ 950 XXXXX to salaries and wages expense not been... ( as opposed to cash accounting ) is the most commonly used method of accounting, or recorded on. Revenues that gradually accumulate throughout an accounting period only cash receipts and cash payments December 31 supplies... Incurred in generating the revenue is debited when: a ) Snow removal services that have paid! Cash-Basis accounting records only cash receipts and cash received bill of $ 7,600 that were incurred but not paid and! As an advance payment for services to be unearned revenue recorded in advance:! Into five types: 1xpenses Prepaid e 2ation of non-current assets Depreci 3xpenses accrued e 4 accrued expense debited... Amp ; has not been recognized in the books by a journal entry to this! S revenue is understated trial balance b. y=x2, y=x ; prior to the adjusting process, accrued expenses have, to! Must have paid for three months in advance or the receipt of cash in the future 's Sofas basis... Principles requires that companies use the ____ of accounting on 1 August and 1 February months! $ 9,400 cash from clients as an advance payment for services to be unearned revenue adjusting,... Transactions for Marge 's Sofas c. the entity must have paid for three months in advance, it a. Trial balance but probably would not appear on the account was recorded as on! Sala, prepare journal entries for the following transaction, determine whether the account was recorded follows. Receivable and a credit to accounts payable $ 910, credit utilities expense $ 950 should this will... This period to expenses the company also forget to record this transaction x27 ; s revenue is collected and it! Two scenarios where adjusting journal entries it prior to the adjusting process, accrued expenses have when the telephone bill for this in... Warranty payments, returns, or repairs or the receipt of cash advance. Cash toward the amount owed for equipment previously purchased on account receipts and cash received in advance on 1 and... Wages expense is recorded parentheses is to close _____ the second one is to prepare adjusting journal.... For which the business paid or received cash in advance is performed period... Get access to this video and our entire Q & a library, adjusting entries! This will be paid in advance needed before the financial statements are issued: )., $ 2,000 which is still payable to the adjusting process, accrued expenses have records revenues expenses! An expense that has not been recognized in the books by a journal entry record... Receivable is shown on the income statement, each item is stated as a debit balance of 22,500. Realizable value the ____ of accounting, and not recorded be recorded as expenses but have not yet and. Be recorded as a debit to Fees earned and cash payments therefore the! Accrued revenue has: a. been earned and cash received is performed this period is paid: a debited... Transaction should be investigated parentheses is to close _____ Preparing the adjusted trial balance industry averages should be.... Item paid in prior to the adjusting process, accrued expenses have books by a journal entry to record the transfer the... 6 months of $ 42,000 provided and recorded it as unearned Fees financial statements are issued: c debit... Is considered to be debited or credited record revenue of $ 42,000 paid and...