1. Phase 4 of the accounting cycle is to prepare the adjusting entries. Describe two types of adjusting entries. If those entries were not made, what would the impact be on the financial statements. 2. How does double entry book-keeping and the system of debits and credits ensure accuracy in financial reporting?

(In total) the response only needs to be 150 words, it does not need to be heavily detailed.

Exhibit 2-1 Five Major Steps in the Accounting Cycle Analyze Analyze transactions from source documents Close Journalize closing entries and prepare post-closing trial balance Record Journalize transactions and prepare unadjusted trial balance Report Prepare financial statements Adjust Journalize adjusting entries and prepare adjusted trial balance