c)
As we know the customers are billed after the services are rendered. So an adjusting entry is required to record the amount of services rendered in December 2009.The effect of this adjusting entry would be an increase in asset,increase in revenue earned during this period and an increase in owner's equity.
d)
No adjusting entry is required because the insurance will go into effect on January 02, 2010.And no benefit has been derived from the asset.So no insurance expense will be recorded on December 2009.
e)
An adjusting entry is required because the depreciation on equipment is required to be recorded on December 2009.The effect of this would be an increase in expense,decrease in asset and decrease in Owner's equity.
f)
An adjusting entry is required for the amount of salaries for December 2009, because the salaries of this month are due on Janauary 02,2010.The effect of this adjusting entry would be an increase in expense , increase in liability and decrease in owner's equity.
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