An analysis of the account balances by the company's accountant provided the following additional information: 1. A physical count of office supplies revealed $1,300 on hand on 31 July 2022 . 2. A one-year insurance policy was purchased on 1 June 2022 for $6,000. 3. Office equipment depreciates at $600 per month. 4. Employees were owed $1,500 for working the last four days of July as the next pay day was on the 5th August. 5. The amount of revenue received in advance that remains unearned at 31 July is $500. Required: a) Using the above additional information, prepare the adjusting entries that should be made by Watson Ltd on 31 July 2022 . Narrations ARE NOT required (10 marks) b) Watson's accountant is not sure why adjusting entries are necessary at the end of July. Explain to her why they are necessary ( 2 marks)