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Lady_Sapphire
Feb 2, 2010, 12:31 AM
Which of the following pairs of accounts could not appear in the same adjusting entry?
a. Interest income and Interest expense; b salaries payable and salaries expense; c rent expense and prepaid rent; d service revenue and unearned revenue

morgaine300
Feb 4, 2010, 10:38 PM
Have you made an attempt to answer this yourself?

Lady_Sapphire
Feb 9, 2010, 08:07 AM
Have you made an attempt to answer this yourself?

Yes, I have. I have read the book, search for examples on the internet and I am confused because I know that assets such as supplies and prepaid accounts when used up become expenses. Unearned revenue is a liability account which has received money for services the company has not performed. As the services are performed the value of unearned revenue decreases but I am not sure what account would off set unearned revenue.

morgaine300
Feb 11, 2010, 02:28 AM
Everything you just said is correct. You've also answered your own question without realizing it. You said "As the services are performed...." Well, where do services performed go?