One Part of an Adjusting Entry Is Given Below

question 52

Essay

One part of an adjusting entry is given below.
Instructions:
Indicate the account title for the other part of the entry.
1. Unearned Service Revenue is debited.
2. Prepaid Rent is credited.
3. Accounts Receivable is debited.
4. Depreciation Expense on equipment is debited.
5. Utilities Expense is debited.
6. Interest Payable is credited.
7. Service Revenue is credited (give two possible debit accounts).
8. Interest Receivable is debited.

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Definitions:

Verbal Contract

A verbal contract is an agreement made through spoken words between parties that is legally binding, though more difficult to prove than written contracts.

Binding

A legal agreement or contract that is enforceable in a court of law, obligating the parties to adhere to the terms.

Written

Pertaining to information or agreements expressed in written form as opposed to being verbal or implied.

Part Performance

An equitable doctrine allowing a court to enforce an oral contract, despite statutory requirements for it to be in writing, based on actions taken in reliance on the contract.