Required Each of the following independent events requires an end-of-period adjustment. Show how each event...
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Accounting
Required Each of the following independent events requires an end-of-period adjustment. Show how each event and its related adjustment affect the accounting equation. Assume the fiscal year ends December 31. The first event is recorded as an example. (Enter any decreases to account balances with a minus sign.) a. Paid $7,300 cash in advance on April 1 for a one-year insurance policy. b. Received a $14,850 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting September 1. c. Purchased $2,250 of supplies on account. At year's end, $230 of supplies remained on hand. d. Paid $5,700 cash in advance on March 1 for a one-year lease on office space. Event Adjustment The Accounting Equation Total Assets Liabilities Other Cash + Assets (7,300) + 7,300 = (5,475) = Stockholders' Equity Retained Common Stock Earnings a. + + (5,475) a. Adj. b + b. Adj. + + C. + + + C. Adj + + + d. d. Adj. +
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