Question 1: What are two or three examples of transactions recorded by your company that might need an adjusting entry? What do you think the original entry would be (accounts debited/credited, and description of the entry), and what do you think the adjusting entry should be (accounts debited/credited, and description of the entry)? An example of what I'm looking for would be purchasing an asset, and recording depreciation thereon.... [If you are not currently with a company, suggest what you believe would be appropriate transactions, based upon the text, lecture, and your experience.]
Details: What accounting assumptions necessitate the use of adjusting entries? What accounts are subject to adjusting journal entries?