Problem: Module 1 Textbook Problem 10 Learning Objectives: 1-10 Show how accounting for prepaid items affects financial statements 1-11 Show how accounting for unearned revenues affects financial statements On May 1. Year 2, Stokes Company paid Eastport Rentals $32,000 for a 12-month lease on warehouse space. Required a. Record the deferral and the related December 31, Year 2 adjustment for Stokes Company in the accounting equation b. Record the deferral and the related December 31. Year 2, adjustment for Eastport Rentals in the accounting equation Complete this question by entering your answers in the tabs below. Required A Required B Record the deferral and the related December 31, Year 2, adjustment for Stokes company in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole dollar, Enter any decreases to account balances with a minus sign.) STOKES COMPANY Accounting Equation - Year 2 Liabilities Stockholders' Equity Propaid Common Retained Earnings Paid 12 months rent (32,000) (32,000) Adjustment for 8 months used 10,667 10.667 Assets Event Cash Rent Stock a. Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation b. Record the deferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. Print Complete this question by entering your answers in the tabs below. Required A Requirdd B Record the deferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign.) + EASTPORT RENTALS Accounting Equation-Year 2 Assets Liabilities Unearned Cash Revenue 32,000 ol + 0 10,667 Event Stockholders' Equity Common Retained Stock Earnings 0 - 32,000 0+ (10,667) Rocolved 12 months rent Eamed 8 months rent