1:27 I N VOLTE 1: 11. Determine how each of the following events and its related year-end adjusting entry affects the accounting equation. Assume the company's year-end is December 31. The first event and its related adjusting entry are shown as an example. Complete entries (B), (C), and (D). 2 extra credit points each. 6 possible extra credit points. A. Paid $12,000 cash in advance on April 1 for a one-year Insurance policy. Original Entry: Cash (asset account) decreases by $12,000; Pre-Paid Insurance (asset account) increases by $12,000. Adjusting Entry at Year End: Pre-Paid Insurance (asset account) decreases $9,000. Insurance Expense of $9,000 reduces Retained Earnings (equity account). B. Purchased $4,800 of supplies on account. At year's end, $400 of supplies remained on hand. Original Entry: Adjusting Entry at Year End: C. Paid $14,400 cash in advance on March 1 for a one-year lease on office space. Original Entry: Adjusting Entry at Year End: D. Received $36,000 cash advance on September 1 for a contract to provide services over the next one-year period. Original Entry: Adjusting Entry at Year End