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During the year, Lyle Co. recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company must make three adjusting entries:
(1) Accrue salaries expense,
(2) Adjust the Unearned Services Revenue account to recognize earned revenue, and
(3) Record services revenue earned for which cash will be received the following period. For each of these adjusting entries (1), (2), and (3), indicate the account from a through i to be debited and the account to be credited.
a. Prepaid Salaries
b. Salaries Expense
c. Services Revenue
d. Salaries Payable
e. Equipment
f. Cash
g. Unearned Services Revenue
h. Accounts Receivable
i. Accounts Payable
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