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Question - Adjusting entries:
1. The company paid $18,000 for a one year lease that commenced on 9/1/20.
2. The company received $25,000 in advance for services to be rendered in the future. As of 12/31/20 the company had earned $15,000.
3. The company paid $9,000 for a 1 year fire policy with an effective date of April 1, 2020.
4. During the year the company purchased $1,400 in supplies of which $400 remain on hand @ 12/31/20.
Requirement -
1. Record each adjusting entries and if they took to permanent account entries, and temporary entries.
2. What's reunification or effect if we don't make adjusting entries.
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