Question 2: Prepare the adjusting entries needed for each transaction assuming a December 31 year end and indicate in the accounting equation boxes the impact of the transaction on the accounting equation. a. Eagles Corporation paid cash of $120,000 on June 1, 2020 for one year's rent in advance and recorded the transaction with a debit to Prepaid Rent. Assume no other adjusting entries had been made this year. ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME Hint: You should write Increase (1), Decrease (D), or No effect (NE) for each. b. During the first year of Eagles' operations, all purchases were recorded as assets. Supplies in the amount of $28,800 were purchased. Actual year-end supplies amounted to $6,600. Assume no other adjusting entries had been made this year. ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME Hint: You should write Increase (I), Decrease (D), or No effect (NE) for each. Hint: You should write Increase (1), Decrease (D), or No effect (NE) for each. c. Eagles Corporation needs to record its bad debt expense for 2020. It estimates that bad debt expense will be $12,300. It is Eagles' first year in operations so the beginning balance in the Allowance for Doubtful Accounts is zero. Assume no other adjusting entries have been made this year and that Eagles uses the Allowance method to account for bad debts. ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME Hint: You should write Increase (D), Decrease (D), or No effect (NE) for each. d. Eagles Corporation sublets a portion of its warehouse for five years at an annual rental of $75,000, beginning on May 1, 2020. The tenant, Carson Wentz, paid one year's rent in advance, which Eagles recorded as a credit to Unearned Rent Revenue. Eagles reports on a calendar-year basis. Assume no other adjusting entries have been made this year. ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME Hint: You should write Increase (D), Decrease (D), or No effect (NE) for each. e. Salaries and wages payable currently has $0 balance. There are 3 employees. Salaries and wages are paid every week on Thursday for the current week and the previous Friday. The three employees each receive $950/week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 3 working days of December. Assume no other adjusting entries have been made this year. ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME Hint: You should write Increase (1), Decrease (D), or No effect (NE) for each