[crossta]

Which of these adjusting entries can I reverse?

Insurance Expense 850
Prepaid Insurance 850

Accounts Receivable 1500
Advertising Revenue 1500

Interest Receivable 500
Interest Revenue 500

Unearned Revenue 1400
Advertising revenue 1400


And how would I do them.

[morgaine300]

You reverse accruals.

Accruals are things with have already happened but where the money has not yet exchanged hands. So accrued expense is when the expense has been incurred but not yet paid. Accrued revenue is when the revenue is earned but cash not yet received.

Versus a deferral, which is when the cash has already exchanged hands but the event hasn't happened yet. Deferred expense is when you've already paid for something but you haven't used it yet. Deferred revenue is when you've already gotten paid but haven't provided the service yet.

Accruals are reversed. Deferrals are not. From those descriptions, which do you think is accrual?

And reverse means literally reverse it - flip the debit and credit around.