Adjustments For the following situations, indicate the types of accounts affected in a year-end adjustment.

Use the following legend: IA = Increase in Asset; DA = Decrease in Asset; IL =

Increase in Liability; DL = Decrease in Liability; IR = Increase in Revenue; IE = Increase in Expense.

Accounts Affected Situation ______ ______ 1. A company owes employees for wages earned but not yet paid.

______ ______ 2. Rent is earned for the month, and the tenant is given until the 10th of the following month to pay.

______ ______ 3. A portion of an insurance policy paid for in advance has expired.

______ ______ 4. A gift card is redeemed by its recipient.

AppendixLO1