Certain adjusting entries made at the end of an accounting period are reversed at the beginning of the following period. Required:
1. Analyze the following four adjusting entries made on December 31, and determine whether a reversing entry is needed.
Date Description Debit Credit Reversing entry necessary Reversing entry not necessary
Dec. 31: Taxes Expense 1,750 Taxes Payable 1,750
31 Deferred Rent Revenue 1,550 Rent Revenue 1,550
31 Accounts Receivable 2,000 Service Revenue 2,000
31 Utilities Expense 565 Utilities Payable 565