(Identifying different types of adjusting entries, LO 5) Refer to Table 3-4 in this chapter (page 125). For each of the situations described below, identify the type of adjusting entry that would ultimately be required as a result of the event. Explain the reason for your choice.

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Example Type Deferred expense/ prepaid Situation Two year's rent is paid in advance a. b. C. d. e. f. g. P09 h. expense Water used by the company has not yet been billed or paid for. Rent is owed by a tenant but not yet paid. A customer pays in advance for services to be rendered. Salaries earned by employees are not yet paid. Computers are purchased. Interest earned on an investment is not due to be received until next year. Membership to a golf club is paid in advance. A golf club receives membership fees in advance.