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


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Each of the following independent events requires a year-end adjusting entry. Show how each event… 1 answer below » Effect of adjusting entries on the accounting equation Required 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. View complete question » Total Assets Stockholders’ Equity Event/ Adjustment Cash + Other Assets = Liabilities + Common Stock + Retained Earnings a -6,000 +6,000 NA NA NA Adj. Effect of adjusting entries on the accounting equation Required 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. Total Assets Stockholders’ Equity Event/ Adjustment Cash + Other Assets = Liabilities + Common Stock + Retained Earnings a -6,000 +6,000 NA NA NA Adj. NA -4,500 NA NA 24,500 a. Paid $6,000 cash in advance on April 1 for a one-year insurance policy. b. Purchased $1,600 of supplies on account. At year’s end, $100 of supplies remained on hand. c. Paid $6,000 cash in advance on March 1 for a one-year lease on office space. d. Received a $15,000 cash advance for a contract to provide services in the future. The contract required a one-year commitment starting September 1. e. Paid $12,000 cash in advance on October 1 for a one-year lease on office space. View less » Jul 24 2014 07:51 AM

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