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 Four types of adjustments are described in Chapter 3: (1) prepaid expenses, (2) unearned revenues

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 Four types of adjustments are described in Chapter 3: (1) prepaid expenses, (2) unearned revenues. (3) accrued revenues, and (4) accrued expenses. Select one of the four adjustments as an area of expertise. Response Requirements: Write a short report to summarize your chosen adjustment type: A. Describe the adjustment and why it is necessary. B. Provide an example of a transaction or event, with dates and amounts, that requires this adjustment C. Provide the adjusting journal entry for the example you used for requirement B. D. Discuss the status of the accounts affected by this adjusting journal entry before and after making the adjustment. E. Discuss the effects on the financial statements if this entry were not made. Note: Three paragraphs is enough. Four paragraphs is too much.