Identifying adjusting entry


Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, accrued revenue) is needed in each situation, at December 31, 2008.

1. Emeril incurs utility expense which is not yet paid in cash or recorded.

2. Emeril received cash for future services and recorded a liability until the revenue was earned.

3. Emeril borrowed $10,000 on October 1, 2008, signing an 8% one-year note payable.

 

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Finance Basics: Identifying adjusting entry
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