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For each situation related to USC Co., please indicate the other account that would be affected as part of the described journal entry. You will not use all accounts, and will use one account more than once.

1. A customer pays USC Co. upfront (i.e., in advance) for a service. When USC Co. performs the B. service, they record Revenue, and which other account would be affected?

2. USC Co. performs a service for a customer, and the customer will not pay for 30 days. When performing the service, USC Co. records Revenue, and which other account would be affected?

3. USC Co. pays for insurance upfront (i.e., one year in advance) in the middle of the year. At year-end, USC Co. makes an adjusting journal entry. Specifically, they record Insurance Expense (or SG&A Expense), and which other account is affected?

4. USC Co. pays for insurance as they are being covered by the insurance (i.e., month by month). When USC Co. records Insurance Expense (or SG&A Expense) each month, which other account is affected?

5. USC Co. has been billed for insurance coverage for the month of December, but will not pay until next year. At year-end (December 31), they record Insurance Expense (or SG&A Expense), and which other account is affected?

6. USC Co. performs a service for a customer, and the customer pays USC Co. at that time. USC Co. records Revenue, and which other account would be affected?

A. Cash B. Accounts Receivable

C. Accounts Payable

D. Prepaid Expense (or Prepaid

E. Unearned Revenue

F. Marketable Securities

G. Accrued Liabilities (or Insuran Payable)

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