EX 3-2 Classifying adjusting entries

The following accounts were taken from the unadjusted trial balance of Orion Co., a congressional lobbying firm. Indicate whether or not each account would normally require an adjust ng 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

To illustrate, the answer for the first account follows:

ACCOUNT                                            ANSWER

Accounts Receivable                     Normally requires adjustment (AR)

Cash

Common Stock

Interest Expense

Interest Receivable

Land

Office Equipment

Prepaid Rent

Supplies

Unearned Fees

Wages Expense