1. List 3 accounts that you may see on an Unadjusted Trial Balance that might require an adjusting journal entry, and explain why each account may need to be adjusted.

2. Define accruals and give an example of an accrued revenue and an accrued expense. Your answer should include the necessary adjusting journal entry for each example.

3. Here are the balances of the following equity accounts for ABC Company and year end Dec. 31, 20xx.

Retained Earnings $1,000

Service Revenue $5,000

Salaries Expense $2,000

Rent Expense $600

Utilities Expense $300

Prepare the necessary closing journal entries at Dec. 31st in proper format. Calculate the correct ending balance in Retained Earnings after the closing entries are posted.