On April 1 equipment was purchased for $6,000 and paid in cash. The equipment is meant to be used for 5 years (or 60 months). During April, equipment has depreciated $100. Required: With regard to the above situation: a. State whether it is a prepaid expense, unearned revenue, accrued revenue or an accrued expense. b. Assuming that the accounting period is 1 month, prepare the necessary adjusting entry on April 30. Answer a. This situation is a Prepaid expense Unearned Revenue Accrued Expense Accrued Revenue b. The necessary adjusting entry is the following: DATE ACCOUNT TITLES DEBIT CREDIT April 30 . $