1. You've been hired by ABC Company to review several transactions that wereomittedas Adjusting Entries at December 31, 2015 as the bookkeeper was new and uncertain on how to record them. For each of the transactions listed below, record the appropriate AJE thatwould have been requiredat December 31st.

   Transactions:

   A. On October 31, 2015, ABC received a $15,000 advance payment from a customer for services to be performed evenly over the next 15 months. The original entry was credited to arealaccount.

   B. On September 1, 2015, ABC paid $12,720 for a four-year insurance policy. ABC debited anominalaccount at that time.

   For your account titles, choose from:

   Service Revenue

   Unearned Revenue

   Insurance Expense

   Prepaid Insurance

   *Because Blackboard is very sensitive in grading your responses, copy & paste from these account titles to insure your answer is not counted wrong for an abbreviation or typo. The dollar amount doesnotneed to include a dollar sign or comma.

   AJE for Transaction A:

   Date	Account Title	Debit #	Credit #
   12/31	Blank 1	Blank 2
   	Blank 3		Blank 4

1. Provide the adjusting entry for Transaction B (listed above)that would have been required.

   *Because Blackboard is very sensitive in grading your responses, copy & paste from these account titles to insure your answer is not counted wrong for an abbreviation or typo. The dollar amount doesnotneed to include a dollar sign or comma.

   AJE for Transaction B:

   Date	Account Title	Debit #	Credit #
   12/31

QUESTION 3

1. If ABC did not do either of the adjusting entries associated with Transactions A and B (from the above information) on December 31, 2015, determine the cumulative effect of all errors on assets, liabilities and equity at December 31, 2015.

   Answer Format:Use O for overstated, U for understated, and NE for No Effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as O2000)

   Assets	Liabilities	Equity	Net Income ('15)

QUESTION 4

1. On May 1, 2015, ABC Inc. received an advance payment from a tenant in the amount of $408,000 that represented four years of rent. When ABC received the cash payment, the entry was recorded with a credit to a nominal account. ABC's year end is December 31. Sadly, ABC was understaffed at the time and no adjusting entries were made in 2015, 2016, or 2017. How did this error affect2016 and 2017financial statements?

   Answer Format:Use O for overstated, U for Understated, and NE for no effect. Do not space between the O/U/NE and the dollar amount of the error.

   Assets 12/31/16	Liabilities 12/31/16	Equity 12/31/16	Net Income 12/31/16	Assets 12/31/17	Liabilities 12/31/17	Equity 12/31/17	Net Income 12/31/17