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.




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