Watson Ltd commenced business on 1 June 2022 and prepares monthly financial statements. The unadjusted trial balance before any adjustments have been made for the month of July is presented below WATSON LTD Unadjusted Trial balance 31 July 2022 Cash at Bank Accounts Receivable Office supplies Prepaid insurance Office equipment Accumulated depreciation-office equipment Accounts Payable Revenue received in advance Bank Loan Share Capital Total Debit Credit S $ 14300 1300 2.200 5.500 16.200 1200 300 1600 6,000 25.000 $42,100 $42.100 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 5 August 5. The amount of revenue received in advance that remains unamed 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 secessary at the end of July Explain to her why they are necessary (2 marks) 1 A-BUI Date Account Name Debit Credit