Provide an example of a transaction that you have in your life that would require an adjusting entry at the end of a month for you, such as for a transaction involving accrual for a liability, accruing for an accounts receivable, adjusting prepaids, recording depreciation, and/or unearned revenue (i.e. you are paid in advance for work not yet performed and therefore need to adjust once the work is provided). Note: If you see that a certain type of adjusting entry, such as a prepaid or an accrual, has been used often by your peers, try to think of another type of entry that relates to your circumstances so that we have a variety of examples. Prepaids for instance is often a common example provided so try to think of other examples in your life, especially if there are already multiple posts providing prepaid examples. Part 2 Explain the transaction both in words in terms of how the accounting equation is affected as well as what would be the debit/credit required for the adjusting entry. As an example, let's say at the end of the month, I have a Visa credit card balance for $100 from purchasing groceries during the month, which I need to pay by the following month. Since I purchased those groceries in the current month, I have an obligation for them in the current month, even though the actual payment is not required until next month. My adjusting entry at the end of the current month would be debit groceries expense (decrease my owner's equity) and credit Visa payable (increase my liabilities). Note: This example is for illustration purposes so that you have an idea of what is required. You should not use a similar example but instead, think of another example from your life experience.