Answer :
To match each journal entry (1 through 6) with the appropriate explanation, let's examine each entry in detail and connect it to the correct explanation:
1. Journal Entry:
- Debit: Interest Expense (2,208)
- Credit: Interest Payable (2,208)
Explanation:
- "To record accrued interest expense." (E)
2. Journal Entry:
- Debit: Insurance Expense (3,180)
- Credit: Prepaid Insurance (3,180)
Explanation:
- "To record this period's use of a prepaid expense." (C)
3. Journal Entry:
- Debit: Unearned Revenue (19,250)
- Credit: Services Revenue (19,250)
Explanation:
- "To record the earning of previously unearned income." (F)
4. Journal Entry:
- Debit: Interest Receivable (3,300)
- Credit: Interest Revenue (3,300)
Explanation:
- "To record accrued interest revenue." (D)
5. Journal Entry:
- Debit: Depreciation Expense (38,217)
- Credit: Accumulated Depreciation (38,217)
Explanation:
- "To record this period's depreciation expense." (A)
6. Journal Entry:
- Debit: Salaries Expense (13,280)
- Credit: Salaries Payable (13,280)
Explanation:
- "To record accrued salaries expense." (B)
Summary:
```
1. E - To record accrued interest expense.
2. C - To record this period's use of a prepaid expense.
3. F - To record the earning of previously unearned income.
4. D - To record accrued interest revenue.
5. A - To record this period's depreciation expense.
6. B - To record accrued salaries expense.
```
1. Journal Entry:
- Debit: Interest Expense (2,208)
- Credit: Interest Payable (2,208)
Explanation:
- "To record accrued interest expense." (E)
2. Journal Entry:
- Debit: Insurance Expense (3,180)
- Credit: Prepaid Insurance (3,180)
Explanation:
- "To record this period's use of a prepaid expense." (C)
3. Journal Entry:
- Debit: Unearned Revenue (19,250)
- Credit: Services Revenue (19,250)
Explanation:
- "To record the earning of previously unearned income." (F)
4. Journal Entry:
- Debit: Interest Receivable (3,300)
- Credit: Interest Revenue (3,300)
Explanation:
- "To record accrued interest revenue." (D)
5. Journal Entry:
- Debit: Depreciation Expense (38,217)
- Credit: Accumulated Depreciation (38,217)
Explanation:
- "To record this period's depreciation expense." (A)
6. Journal Entry:
- Debit: Salaries Expense (13,280)
- Credit: Salaries Payable (13,280)
Explanation:
- "To record accrued salaries expense." (B)
Summary:
```
1. E - To record accrued interest expense.
2. C - To record this period's use of a prepaid expense.
3. F - To record the earning of previously unearned income.
4. D - To record accrued interest revenue.
5. A - To record this period's depreciation expense.
6. B - To record accrued salaries expense.
```