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. (Enter any decreases to account balances with a minus sign.) a. Paid $7,000 cash in advance on April 1 for a one-year insurance policy. b. Received a $16,440 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting September 1. c. Purchased $2,100 of supplies on account. At year's end, $200 of supplies remained on hand. d. Paid $5,850 cash in advance on March 1 for a one-year lease on office space. The Accounting Equation Total Assets Event Adjustment Stockholders' Equity Cash Other Assets Liabilities Common Stock + (7,000) + 7,000- a. Adj. (5,250) + + Retained Earnings (5,250) b. b. Adj C c. Adj d. d. Adj + M