A. Paid $6,400 cash in advance on October 1 for a one-year insurance policy.

B. Received an $5,200 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting April 1.

C. Purchased $2,000 of supplies on account. At years end, $255 of supplies remained on hand.

D. Paid $11,520 cash in advance on August 1 for a one-year lease on office space.

The Accounting Equation
Event/ Adjustment	Total Assets			=	Liabilities	+	Stockholders Equity
	Cash	+	Other Assets				Common Stock	+	Retained Earnings
a.		+		=		+		+
a. Adj.		+		=		+		+
b.		+		=		+		+
b. Adj.		+		=		+		+
c.		+		=		+		+
c. Adj.		+		=		+		+
d.		+		=		+		+
d. Adj.		+		=		+		+