E3-4 - 6 Emeril received cash for future services and...

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Emeril Corporation encounters the following situations: Instructions 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 collects $1,000 from a customer in 2008 for services to be performed in 2009. Unearned revenue 2. Emeril incurs utility expense which is not yet paid in cash or recorded. Accrued expense 3. Emeril's employees worked 3 days in 2008, but will not be paid until 2009. Accrued expense 4. Emeril earned service revenue but has not yet received cash or recorded the transaction. Accrued revenue 5. Emeril paid $2,000 rent on December 1 for the 4 months starting December 1. Prepaid expense
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Unformatted text preview: 6. Emeril received cash for future services and recorded a liability until the revenue was earned. Unearned revenue 7. Emeril performed consulting services for a client in December 2008. On December 31, it billed the client $1,200. Accrued revenue 8. Emeril paid cash for an expense and recorded an asset until the item was used up. Prepaid expense 9. Emeril purchased $900 of supplies in 2008; at year-end, $400 of supplies remain unused. Prepaid expense 10. Emeril purchased equipment on January 1, 2008; the equipment will be used for 5 years. Prepaid expense 11. Emeril borrowed $10,000 on October 1, 2008, signing an 8% one-year note payable. Accrued expense...
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