Question $3$ Accrual Accounting$/$Adjustments

A$)$ prepare year$-$end adjustments for the following transactions $($Narrations are not required$)$

$1.$ Revenues received in advance now earned, $$2,000$

$2.$ Four ears rent totalling $$40,000,$ was just paid in advance and correctly recorded at the beginning of the year.

$3.$ Services totalling $$9,500$ had been performed but not yet invoiced at the end of the year.

$4.$ Depreciation on vehicle totalled $$2,700$ for the year.

$5.$ Supplies for use totalled $$885.$ By year end, only $$285$ in supples remained.

$6.$ Salaries owed to employees at the end of the year totalled $$2,500.$

b$)$ Briefly explain why a business should record adjusting entries