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Determine which of the following transactions may require adjustments. (Check all that apply.) Multiple select question. Supplies were purchased at the beginning of the year, but not all were used. a 24-month insurance policy was prepaid Equipment was purchased in the middle of the year. Six months of rent were paid in advance. An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. a one-month premium on an insurance policy was paid An employee was paid his weekly wages in full at the end of the week. Rent was paid for the month.

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anthougo

Answer:

Transactions that require end-of-period adjustments:

1. Supplies were purchased at the beginning of the year, but not all were used.

2. a 24-month insurance policy was prepaid

3. Six months of rent were paid in advance.

4. An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month.

Note: No. 3 depends on when the rent was paid.

Explanation:

These transactions do not require any end-of-period adjustments:

1. Equipment was purchased in the middle of the year.

2. a one-month premium on an insurance policy was paid

3. An employee was paid his weekly wages in full at the end of the week.

4. Rent was paid for the month.

These four transactions require recording in the journals and not adjustments.  They do not require end-of-the-period adjusting entries.  It is only the depreciation expense for the equipment that will require adjustment for the half year.

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