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  3. each of the following independent events requires

Each of the following independent events requires a year-end adjusting entry. Show how each event...

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Accounting

Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entry affect the accounting equation. Assume a December 31 closing date. The first event is recorded as an example.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.

Paid $6,500 cash in advance on October 1 for a one-year insurance policy.

Received a $5,300 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting April 1.

Purchased $2,050 of supplies on account. At years end, $260 of supplies remained on hand.

Paid $11,640 cash in advance on August 1 for a one-year lease on office space.

The Accounting Equation
Event or Adjustment Total Assets = Liabilities + Stockholders Equity
Cash + Other Assets Common Stock + Retained Earnings
a. (6,500) + 6,500 = + +
a. Adjustment + (1,625) = + + (1,625)
b. + = + +
b. Adjustment + = + +
c. + = + +
c. Adjustment + = + +
d. + = + +
d. Adjustment + = + +

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