In this chapter, four types of adjustments are described: prepaid expenses, unearned revenues, accrued expenses, and accrued revenues. Select one of the four adjustments as an area of expertise, and in a minimum initial post of at least 200 words address the following:

• Description of the adjustment and why its necessary.
• Example of a transaction or event, with dates and amounts that require
  • Adjusting entries for the example.
  • Status of the affected accounts before and after the adjustment.
• Effects on financial statements of not making the adjustment.