1. On February 2, 2006, Home Team Corporation purchased equipment costing $72,000. Home Team performs adjusting entries monthly. Record this equipments depreciation expense on December 31, 2011, assuming its estimated life was eight years. What types of accounts should be debited and credited by this entry.

2. If services have been rendered to customers during the current accounting period but no revenue has been recorded and no bill has been sent to the customers, why is an adjusting entry needed? What types of accounts should be debited and credited by this entry.

3. An advance cash received its not revenue; its a liability? Explain