In this chapter, four types of adjustments are described: prepaid expenses, unearned revenues, accrued expenses, and accrued revenues. Select one of the four adjustments as an area of expertise, and in a minimum initial post of at least 200 words address the following:
Description of the adjustment and why it’s necessary.
Example of a transaction or event, with dates and amounts that require
Adjusting entries for the example.
Status of the affected accounts before and after the adjustment.
Effects on financial statements of not making the adjustment.
