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.

a. Paid \($3,000\) cash in advance on April 1 for a one-year insurance policy.

b. Purchased \($1,600\) of supplies on account. At year’s end, \($100\) of supplies remained on hand.

c. Paid \($6,000\) cash in advance on March 1 for a one-year lease on office space.

d. Received a \($15,000\) cash advance for a contract to provide services in the future. The contract required a one-year commitment starting September 1.

e. Paid \($12,000\) cash in advance on October 1 for a one-year lease on office space.

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Total Assets Other Stockholders' Equity Common Retained Event/ Adjustment Cash + Assets === Liabilities + Stock + Earnings a -3,000 Adj. NA +3,000 -2,250 NA NA NA NA NA -2,250