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 a December 31 closing date. The first event is recorded as an example. (Do not round intermediate calculations & Round your final answer to nearest whole dollar.)

1. Paid $5,200 cash in advance on October 1 for a one-year insurance policy.

2. Received an $4,000 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting April 1.

3. Purchased $1,400 of supplies on account. At years end, $195 of supplies remained on hand.

4. Paid $10,080 cash in advance on August 1 for a one-year lease on office space.

The Accounting Equation
Event/ Adjustment	Total Assets			=	Liabilities	+	Stockholders Equity
	Cash	+	Other Assets				Common Stock	+	Retained Earnings
a.	(5,200)	+	5,200	=		+		+
a. Adj.		+	(1,300)	=		+		+	(1,300)
b.		+		=		+		+
b. Adj.		+		=		+		+
c.		+		=		+		+
c. Adj.		+		=		+		+
d.		+		=		+		+
d. Adj.		+		=		+		+