Problem 3-26A (Algo) Effect of adjusting entries on the accounting equation LO 3-1, 3-2, 3-3 Required: Each of the following independent events requires an end-of-period adjustment. Show how each event and its related adjustment affect the accounting equation. Assume the fiscal year ends December 31 . The first event is recorded as an example. Note: Enter any decreases to account balances with a minus sign. a. Paid $7,200 cash in advance on April 1 for a one-year insurance policy. b. Received a $16,200 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting September 1 . c. Purchased $2,200 of supplies on account. At year's end, $220 of supplies remained on hand. d. Paid $7,200 cash in advance on March 1 for a one-year lease on office space