From the dropdown box beside each adjusting entry, select the letter of the explanation A through I that best describes the journal entry (you can use letters more than once):
A. To record receipt of unearned revenue.
B. To record this period's earning of prior unearned revenue.
C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue.
G. To record this period's use of a prepaid expense.
H. To record payment of a prepaid expense.
I. To record this period's depreciation expense.
rent expense
To select the letter of the explanation that best describes the journal entry, you will need to analyze the nature of the transaction being recorded. Here is a breakdown of each option:
A. To record receipt of unearned revenue: This option would be chosen when a company receives payment for goods or services that have not yet been delivered or performed.
B. To record this period's earning of prior unearned revenue: When a company has previously received payment for goods or services and now recognizes the revenue for the period in which it was earned.
C. To record payment of an accrued expense: This option is selected when a company pays an expense that has been incurred but not yet paid.
D. To record receipt of an accrued revenue: When a company receives payment for revenue that has been earned but not yet received or recorded.
E. To record an accrued expense: This option is chosen when an expense has been incurred but not yet paid or recorded.
F. To record an accrued revenue: When revenue has been earned but not yet received or recorded, this choice is selected.
G. To record this period's use of a prepaid expense: When a company utilizes a prepaid expense that was previously recorded, this option is chosen.
H. To record payment of a prepaid expense: This choice is selected when a company pays for an expense in advance that will be used over time.
I. To record this period's depreciation expense: When a company records the decrease in value of an asset over time, this option is selected.
Based on the given options, you would need to analyze each journal entry and choose the letter that best describes the nature of the transaction being recorded.