1. Name at least two types of accounts that require adjusting entries. 1-Prepaid expenses 2- Depreciation expenses. 2. Given the credit term 5/5; net/65 2 Is this company eligible for discount ? If so, calculate the discount in $. Jan 16 Purchases: $120,000 Jan 31 Net payment done for Jan 16 purchases 3. How is understated accounts corrected in an accounting year? Reflect the cumulative effect of the error on periods prior to those presented in the carrying amounts of assets and liabilities as of the beginning of the first period presented; and Make an offsetting adjustment to the opening balance of retained earnings for that period; and Adjust the financial statements for each prior period presented, to reflect the error correction. 4. How many times in a year are closing entries made? 6. What is meant by uneared revenue? Give an example. 7. What is meant by perpetual inventory recording system? 8. If in a trial balance the debit is equal to credit, what does it indicate? 2. If the total expense of a company is $95,000 and sales revenue is $80,000. What is the net income or loss of the company? 2. Prepare adjusting entries for the following transactions: i. Machinery tools account has a $36,000 debit balance to start the year. New machinery tools of $10,000 was purchased and recorded during the year. As on Dec. 31 the stock taking shows a total of $1,550 of machinery tools remaining. ll. At the year-end, a company has earned $ 18,000 sales commission, but it has not yet been billed or recorded. Date of the Account title and explanation Dr. Cr. transaction