1. Below is a Trial Balance as of July 31, XX, for Les Cash, and his wife Mora. Together they own and operate the Cash Inn. Determine which of the accounts would require adjustment ( i.e. an adjusting entry) at the end of the current one month period for the Cash Inn. Do not attempt to determine the amount of the adjustment, but DO specific the accounts in a General Journal entry that would be required by the adjustment. Include the proper measurement date in creating the entry. Account Dr. Cr. Cash $1048 Billings 460 Supplies 840 Prepaid Insurance 1200 Building 140000 Accumulated Depreciation-Building 20000 Land 1000 A/P 410 Salary Payable 600 Prepaid reservations 3300 Note Payable 15yr 102000 Les and Mora Cash Capital 6519 Lodging Fees 16540 Utility Expense 621 Salary Expense 4200 Totals 149369 149369 2. Prepare the adjusting entries using good form for each of the following situations as of January 31 (measurement date) for the one month of January a. Purchase a one-year insurance policy on January 2 for $3,600 b. On January 1, the supplies account indicated an $800 balance. On January 31, a physical inspection reveals $200 on hand c. Equipment was purchased last October 1 for a cost of $10,000. It is estimated to have a 5 year useful life and a $500 residual value. What is the depreciation adjusting entry for January? d. A customer had prepaid $800 for future servies last September 10. At January 31, all but $200 of the work has been performed in January. e. Made arrangements with the local paper to run an ad every Wednesday for $150 each. There are four Wednesdays in January. At January 31, the bill had not yet been received. All accruals are done once a month. f. As per a contract we have completed performance on a service agreement for a client in the amount of $200. As a January 31, the client had not yet been billed. 3. Classify the following items as: a) prepaid deferral expense b) Prepaid deferral revenue c) Accrual expense d) Accrual revenue In your answer you must explain why you choose a particular option to receive credit for your answer. 1. Utilities owned but not paid 2. Fees received, but not yet earned. 3. Subscriptions received in advance by a magazine publisher. 4. Supplies on hand. 5. Insurance paid for one year in advance 6. Employees have worked, but not yet been paid. 7. Fees earned but not yet received 8. Why was cash not involved in any of the above situations