Essay
The following information has been gathered for Stylish Co. to assist in preparing its year-end adjusting entries at December 31:
(a) The company has earned $2,500 of rental revenue that has not yet been received or recorded.
(b) Stylish has recorded $3,200 of unearned service fees. At year-end, $1,500 of this amount has been earned.
(c) Depreciation on equipment for the year is $7,800.
(d) Employees have earned but have not yet been paid $2,750 in salaries.
Identify which of the above accounting adjustment would be reversed assuming Stylish Co. uses reversing entries.
Correct Answer:

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(a) Reversed.
(b) No...View Answer
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Correct Answer:
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(b) No...
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