The trial balance of Bair Company includes the following balance sheet accounts. Identify the accounts that require adjustment. For each account that requires adjustment, indicate (a) the type of adjusting entry (prepaid expenses, unearned revenues, accrued revenues, and accrued expenses) and (b) the related account in the adjusting entry.
(a)
(b)
Account
Type of Adjustments
Related Account
Accounts Receivable
Accrued RevenuesPrepaid ExpensesAccrued ExpensesUnearned Revenues
Interest ExpenseDepreciation ExpenseAccounts ReceivableInsurance ExpenseService RevenueAccounts PayableInterest RevenueCash
Prepaid Insurance
Accrued ExpensesPrepaid ExpensesUnearned RevenuesAccrued Revenues
Accounts ReceivableAccounts PayableInsurance ExpenseInterest RevenueDepreciation ExpenseService RevenueInterest ExpenseCash
Accumulated Depreciation”Equipment
Accrued ExpensesUnearned RevenuesPrepaid ExpensesAccrued Revenues
Interest RevenueAccounts PayableCashService RevenueDepreciation ExpenseInterest ExpenseAccounts ReceivableInsurance Expense
Interest Payable
Prepaid ExpensesAccrued RevenuesUnearned RevenuesAccrued Expenses
Interest ExpenseAccounts PayableService RevenueInsurance ExpenseDepreciation ExpenseInterest RevenueAccounts ReceivableCash
Unearned Service Revenue
Prepaid ExpensesAccrued RevenuesAccrued ExpensesUnearned Revenues