Required Each ol the feilowing ndependent events roquires a

Required Each ol the feilowing ndependent events roquires a year-end adjusting entry Show how each event and is reiated adj sting eetry afect the acounting equation Assume a December 31 ckosing date The first vant ts mecanset saarni. (Do not round intermediate calculations. Enter any decreases to account balances with a mnus sign a Paid SE.0t cash in advance on Agni 1 for a one-year insurance policy b Purthas8 52 400 of supplies on account. At year\'s end, $200 of supplies remained on hand Pat ST.200 ansh in aovance on March 1 for a one-year lease on office space d Razeivec an $15.300 cash advance for a contract to provide services in the future. The contract required Answer is not complete. The Accounting Equation Total Assets Event Stockholders Equity Other LiabilitiesCommon Cash StockRetained 4,500 (2.200) (6,000) (6.000) 6,000 4,500) a. Adi b. b. Adj 2400 12.200) 7,200 (7,200)+ (6,000) \" 18,000+ (18,000) (6,000) 6,000

Solution

The Accounting Equation Event / Adjustment Total Assets = Liabilities + Stockholders\' Equity Cash + Other Assets Common Stock + Retained Earnings a.          (6,000) +                    6,000 =                           -   +                                 -   +                                      -   a. Adj. +                  (4,500) =                           -   +                                 -   +                             (4,500) b.                   -   +                    2,400 =                    2,400 +                                 -   +                                      -   b. Adj.                   -   +                  (2,200) =                           -   +                                 -   +                             (2,200) c.          (7,200) +                    7,200 =                           -   +                                 -   +                                      -   c. Adj.                   -   +                  (6,000) =                           -   +                                 -   +                             (6,000) d.          18,000 +                           -   =                  18,000 +                                 -   +                                      -   d. Adj.                   -   +                           -   =                  (6,000) +                                 -   +                             (6,000)