EFFECTS OF ADJUSTING ENTRIES ON THE ACCOUNTING EQUATION Four adjusting entries are shown below:

a. Interest Expense 1,458 Interest Payable 1,458

b. Interest Receivable 839 Interest Revenue 839

c. Insurance Expense 3,160 Prepaid Insurance 3,160

d. Unearned Rent Revenue 5,721 Rent Revenue 5,721 Required:

Analyze the adjusting entries and identify their effects on the financial statement accounts. (Ignore any income tax effects.) Use the following format for your answer:

Transaction Assets Liabilities Beginning Common Stock Retained Earnings Revenues Expenses