Discussion #1 Overview - Initial Post The goal of this discussion is to apply your critical thinking ability to the knowledge you've gained. If your LAST Name begins with A-G then you need to post your response to Case #1 and reply to another student's Case #2. If your LAST name begins with H-Z then you will need to post your response to Case #2 and reply to another student's Case #1. Case #1- Adjusting Entries "I don't understand," complained Chris, who responded to your posting for tutoring in introductory accounting. The compliant was in response to your statements that recording adjusting entries is a critical step in the accounting processing cycle, and the two major classifications of adjusting entries are prepayments and accruals." Questions to respond to Chris about: 1. When do prepayments occur? 2. When do accruals occur? 3. Describe the appropriate adjusting entry for prepaid expenses. 4. Describe the appropriate adjusting entry for deferred revenues. 5. What is the net effect on net income, assets, liabilities, and shareholder's equity of not recording a required adjusting entry for prepayments? 6. Describe the appropriate adjusting entry for accrued liabilities. 7. Describe the appropriate adjusting entry for accrued receivables. 8. What is the net effect on net income, assets, liabilities, and shareholder's equity of not recording a required adjusting entry for accruals?