Perez Company Was Founded in 2012 and Engaged in the Following

Essay

Perez Company was founded in 2012 and engaged in the following transactions:
1.issued common stock for cash
2.purchased supplies on account
3.collected cash from a customer for services to be provided over a period of 1 year
4.paid a cash dividend to stockholders
5.purchased a 2-year fire insurance policy
6.provided services to customers on account
7.collected cash from accounts receivable
8.paid cash for various operating expenses
9.paid rent in advance for 3 months at a time
Required:
a)For which of these transactions would adjusting entries be required at the end of the year?
b)Explain the reason why adjusting entries are required before financial statements can be prepared.