Problem 3-26A Effect of adjusting entries on the accounting equation LO 3-1, 3-2, 3-3 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 the fiscal year ends December 31. The first event is recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) E a. Paid $7,100 cash in advance on April 1 for a one-year insurance policy. E b. Received a $16,620 cash advance for a contract to provide services in the future. The contract required a one-year commitment starting September 1. c. Purchased $2,150 of supplies on account. At year's end, $210 of supplies remained on hand. d. Paid $5,700 cash in advance on March 1 for a one-year lease on office space. Eventi Adjustment The Accounting Equation Total Assets Other = Liabilities Cash as" + Assets (7,100) + 7,100 (5,325) = 16,620 Stockholders' Equity Common Retained Stock Earnings + a. Adj. + + (5,325) + + + b. Adj. + + + + + + c. Adj. + + + + d. Adj. +