Problem 2-33A (Algo) Effect of adjusting entries on the accounting equation LO 2-1, 2-2, 2-5, 2-6, 2-7 Required Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entry affect the accounting equation. Assume a December 31 closing date. The first event is recorded as an example. (Do not round Intermediate calculations & Round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign. Not all cells require input.) a. Paid $5,400 cash in advance on October 1 for a one-year Insurance policy. b. Received a $4,200 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting April 1. c. Purchased $1.500 of supplies on account. At year's end, $205 of supplies remained on hand. d. Poid $10.320 cash in advance on August 1 for a one-year lease on office space. Event Adjustment The Accounting Equation Total Assets Other Liabilities Cash Assets (5,400) 5,400 + (1.350) Stockholders' Equity Common Retained Stock Earnings 21 a Adi . + (1,350) b + + + b. Adj . c c. Ad . + d nus sign. Not all cells require input.) Paid $5,400 cash in advance on October 1 for a one-year insurance policy. Received a $4,200 cash advance for a contract to provide services in the future. The starting April 1. Purchased $1,500 of supplies on account. At year's end, $205 of supplies remained Paid $10,320 cash in advance on August 1 for a one-year lease on office space. Eventi Adjustment + The Accounting Equation Total Assets Other Liabilities Cash Assets (5,400) + 5,400 (1,350) = Stockholders' Equity Common Retained Stock Earnings a. 11 + + + (1,350) a. Adj. b. b. Adj. + + + + + + C. +++++++ + c. Adj. d. d. Adj. + +