The following accounts were taken from the unadjusted trial balance of Hartford Co., a congressional lobbying firm. Indicate whether or not each account would normally require an adjusting entry. If the account normally requires an adjusting entry, use the following notation to indicate the type of adjustment:

AE—Accrued Expense

AR—Accrued Revenue

PE—Prepaid Expense

UR—Unearned Revenue

Account

Answer

Accounts Receivable

Normally requires adjustment (AR).

Cash

 

Charmaine Hollis, Drawing

 

Interest Payable

 

Interest Receivable

 

Land

 

Office Equipment

 

Prepaid Rent

 

Supplies

 

Unearned Fees

 

Wages Expense