These are following types of adjusting entries: Accruals: These include revenues not yet received nor recorded and expenses not yet paid nor recorded. For example, interest expense on loan accrued in the current period but not yet paid. Prepayments: These are revenues received in advance and recorded as liabilities, to be recorded as revenue and expenses paid in advance and recorded as assets, to be recorded as expense. For example, adjustments to unearned revenue, prepaid insurance, office supplies, prepaid rent, etc. Non-cash: Adjusting entries for non-cash items: Ex: depreciation expense, allowance for doubtful debts etc. Relevant information for the preparation of adjusting entries of Company A (month end) a) Office supplies costing $12,800 were unused at the end of the period. b)Prepaid rent of $24,000 was paid for the months January, February and March. c) Equipment costing $80,000 has useful life of 5 years and its estimated salvage value is $14,000. Depreciation is provided using the straight line depreciation method. d) The interest rate on the $20,000 5 year note payable is 9%. Accrue the interest for one month. e) $3,000 worth of unearned revenue has been has been earned. f) Recorded one month's interest payable on bonds payable. Use straight line to amortize the discount when doing calculations. ($5000, 10%, 5 year bonds at 98)